The Government/Employee Owner Contracts

25th March 2013
The Government/Employee Owner Contracts image

The Government is to press on with Employee-Owner

In October 2012 the Government launched a consultation on its proposal for a new type of contract of employment of “employee-owner”, under which employees would be given shares in exchange for waiving certain employment rights.

Under these proposals a new tier of employment status would be created namely employee-owners who would receive shares of between £2,000 and £50,000 (exempt from Capital Gains Tax) in return for giving up specified employment rights (such as ordinary unfair dismissal). 

In December the Government published its response for the consultation, and despite mixed views from those taking part in the consultation, it wishes to proceed albeit with certain modifications.  For example the employee-owner contract will be renamed “employee-shareholder” contract and the upper limit of shares (£50,000) will be removed (but will remain for Capital Gains Tax exemption).  Amendments will be made to the Growth and Infrastructure Bill accordingly.  The Government is also set to issue guidance on these laws and the tax consequences of “employee-shareholder” contracts.  In particular the Government acknowledges that there is already uncertainty amongst employers as to the differences between the two existing types of employee status of workers and employees, and that adding a new status of employee-shareholder with different rights again could add further to the confusion. 

Daven Naghen, head of our Employment Team, commented as follows:-

“I don’t know yet whether the new scheme will be workable in practice, more information and detail is going to be required.  Watch this space!”

If you want to keep up to date with developments on employee-shareholder contracts then stay subscribed to our Employment Newsletter


How Banks are Cashing in on Wills image

How Banks are Cashing in on Wills

Recent headlines have reported how banks are now cashing in on Wills.

During the 1990s and early 2000s, banks offered customers low cost Wills (or sometimes even free Wills) but the small print allowed the bank to charge extortionate rates to act as Executors. It is reported that banks are expecting billions of pounds of revenue from their Will writing services and administering estates and in some cases their fees have been over £12,000 to administer an estate as they look to charge a fixed fee PLUS a percentage of the deceased’s wealth.

If you or a loved one has made a Will through a bank we would urge you to check who you have appointed as Executors and check any small print which you may have signed. If you are unsure then please speak with one of our lawyers in the Wills and Probate team who can look at your existing Will with you. It may be appropriate to make a new Will which revokes any previous Will you have made which could save your family thousands of pounds when your estate needs to be administered.

In the majority of cases, when someone has passed away we can provide the family with a quote of how much the legal fees will be so that there are no nasty surprises once the administration is complete.

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Testimonials

Gemma Mayer LLB

"I would highly recommend Maples Solicitors, especially Gemma Mayer, for any conveyancing work. The level of support and professionalism was excellent at all times. I also felt if I needed to ask or clarify anything that it was not an issue. Buying and selling a house is stressful enough, but Gemma helped me through it step by step."

Anita Toal LLB BA

"I think you are brilliant. You can use my comments above. You are efficient, friendly and quite clearly very good at what you do. Mainly you don’t leave people hanging around too long for." "So easy to talk to her and she understood what I wanted. She put me at ease and I cant thank her enough"

Daven Naghen LLB

"Daven provided an excellent service, from attending the first interview with me to the final court appearance. He filled me full of confidence that he would defend me to which he did and come out with an excellent outcome in view of my position that I had put myself in."

Faye Blair LLB

Faye was excellent, sensitive and acted very well to the time constraints we faced. Great service and dealt with compassion at such sad times made the process less painful very professional.

Jamie Dobbs ACILEx

Over the last forty years I have cause to deal with many law firms both in a personal and professional capacity, including some ‘top’ London Companies. In all of those dealings I have never found anyone as proactive and so willing to offer help and advice as Jamie Dobbs. During the last two years Jamie guided my parents through the completion of Lasting Powers of Attorney. Helped myself with the use of the LPA and recently dealing with Probate and Estate Administration following their death.

Mike Pepper MA

Mike Pepper gave us excellent advice. He was always most helpful and accommodating giving lucid explanations every step of the way. Thank you Mike.

Claire Smith FCILEx

Claire Smith has been amazing in every way. I highly recommend her and I am so grateful for all her help. She’s professional on all levels, reliable, extremely organised and I will be recommending her to everyone. I’m very lucky to have had her representing me and I can’t thank her enough. She is an asset to Maples. Thanks so much Claire!