In last month’s March Newsletter we informed you that the House of Lords voted (by 232 to 178) against introducing the concept of employee shareholders (whereby employers would be able to offer to swap some employments rights, including those relating to redundancy, for at least £2,000 of shares).
There has been some ‘ping-pong’ between the two Houses since then. The House of Commons voted to reintroduce the employee shareholder scheme, but the House of Lords then voted for the second time to reject it. Indeed, the Lords were seemingly very against the proposal and Lord Pannick QC said that the scheme “frustrates the very purpose of employment rights”.
However, the Government was determined to pursue the scheme and introduced a further concession, in addition to a number of previous concessions. The final list of concessions now reads:
These concessions together seem to have made the scheme more palatable to the Lords, as it has now voted to accept it and Employee Shareholders will now become law.
Royal Assent for the scheme is expected today and the Government intends to implement it in Autumn 2013.