Lords reject “Rights for Shares” proposals

The House of Lords has voted against the Government’s “Rights for Shares” proposals contained in the Growth and Infrastructure Bill.

Iain Hasdell, CEO of the Employee Ownership Association, has welcomed this news on behalf of the UK’s employee owned businesses.

Hasdell said:

“I am delighted to see that the now infamous rights for shares scheme has been overturned by the House of Lords. Our member businesses and the employee owners within them were alarmed that the Government’s proposals might redefine employee ownership as a model in which worker rights on such matters as redundancy and unfair dismissal have to be sacrificed by employees in order for them to be allowed an ownership stake in the business in which they work.”

He continued: “Employee ownership in the UK is growing and the businesses concerned thriving, because they enhance not dilute the working conditions and entitlements of employee owners. If the estimated £100 million of cost associated with these proposals can be more wisely invested in initiatives to increase employee ownership in the UK, including investing some of it to implement the recommendations contained in the Nuttall Review, we will reach our target of 10% of GDP being created by employee owned businesses far faster.”