The Government had intended to introduce the new concept of employee shareholder status. As a reminder, this intends to allow employees to take up this status in return for an award of at least £2,000 worth of shares by their employer, but they would need to give up various employment rights. This was initially due to come into force on 6 April 2013. This was then delayed until Autumn 2013, with the Chancellor announcing in his Budget that this would come into force on 1 September 2013.
However, the Chancellor’s statement may have been premature, because the day before the Budget the House of Lords voted (by 232 to 178) against introducing the concept of employee shareholders. The Bill will now return to the House of Commons, where the Government will decide whether to accept the defeat (in which employee shareholder contracts will not happen), or try to re-introduce the clause.