On 24 April 2013, the House of Lords finally approved the legislative provisions introducing employee shareholder status into UK law, having rejected them twice previously.
As a result, the controversial ‘employee shareholder’ status will now become law and is likely to be implemented later this year.
House of Lords approval comes after the government made a number of concessions to the original employee shareholder provisions, which can be found here.
However, the latest concession is that, in order for an individual’s agreement to become an employee shareholder to be valid, the individual must have taken advice from a relevant independent advisor on its effects prior to entering into the relevant contract. In addition, the employer will have to pay reasonable costs for the individual taking that advice, regardless of whether that individual actually then accepts the role.