Response to Government consultation: Implementing employee owner status

The Equality and Human Rights Commission has responded to the government's consultation on implementing employee owner status. We believe that employers, if they wish to, should be able to offer share ownership options to employees and at the same time offer the same rights and benefits as all other employees in the UK. This will make them more attractive to skilled and talented recruits who wish to work in a modern flexible workplace with full protection of employment rights.

The Government published its proposal to introduce a new employment status for employees in October 2012. The 'employee owner' status will enable businesses to offer shares in their company to new recruits. They will have the same rights as current employees excluding unfair dismissal, certain rights to request flexible working and training, statutory redundancy pay and they will be required to give longer notice periods to return from maternity or adoption leave.

In the Commission's view an increase in employee owners of businesses is to be welcomed. Such companies tend to be more successful and may achieve high standards of equality. However, the introduction of a new status of employee owner should not result in a reduction in individuals' rights to protection from unfair dismissal, access to flexible working or the notification of return from parental leave.

Download the full consultation response.

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Last Updated: 20 Nov 2012