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

Dementia Friends image

Dementia Friends

Maples Solicitors are proud to announce that they have now joined to become Dementia Friends which is an Alzheimer’s Society initiative.

The private client department of Maples Solicitors prepare Wills and Lasting Powers of Attorney on a regular basis and this often involves dealing with clients who are suffering from dementia. The private client team pride themselves on spending as much time as is necessary to assist all of their clients, but those suffering from dementia often require additional assistance and time to ensure that they have fully understood the legal documentation that they are creating. The private client department are regularly complimented on the way they deal with such clients, whether this be explaining things to them in a clear and uncomplicated manner, spending time with them or putting them at ease.

It is a misconception that anyone suffering from dementia cannot make a Will or Lasting Power of Attorney. Only if someone lacks sufficient mental capacity are they unable to make such a document. It is therefore vitally important upon any diagnosis of dementia that legal advice is taken as soon as possible to make sure that your affairs are in order so that it is easier for your family to deal with your affairs if you are unable to do so yourself.

To become Dementia Friends, Maples Solicitors have pledged to develop their understanding of dementia and continue assisting clients suffering from dementia with their legal affairs in a respectful, friendly and efficient way that is not daunting making the process as easy as possible.

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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"

James Turner BA

James Turner was extremely helpful with our buying process. Everything went smoothly. We are very happy with the level of professionalism demonstrated by the office. Highly recommended solicitors. Will definitely do business with them again.

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 GCILEx

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.

Donna Sandison FCILEx

Donna has been helpful and professional every step of the way during the process. Always on hand to answer any queries and totally professional and friendly at all times.