The Chancellor has outlined a scheme to offer tax-free shares in companies in return for employees waiving some of their working rights.
Chancellor George Osborne has unveiled plans to offer workers shares in their employer's company in return for giving up some of their employment rights.
At the Conservative Party Conference, the Chancellor outlined an “enterprise strategy”.
Part of it involves employees waiving their rights to statutory redundancy pay, protection from unfair dismissal, time off for training and flexible working. It would also require mothers to give 16 weeks’ notice of when they are to return to work following maternity leave. The current deadline is eight weeks.
In return, employees would be offered between £2,000 and £50,000-worth of shares. The shares would be exempt from Capital Gains Tax if sold.
The proposals could be in place by April next year if they are approved.
The new contracts would be optional for existing staff but could be the sole employment contract offered to new starters.
The Chancellor said: “This idea is particularly suited to new businesses starting up and small- and medium-sized firms.
"Get shares and become owners of the company you work for. Owners, workers and the taxman, all in it together."
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