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Employee shareholder status

The new employment status, the employee shareholder, took effect on 1 September 2013.

Employee shareholders have reduced employment rights, including no rights to statutory redundancy pay and unfair dismissal unless their employer chooses.  The quid pro quo is that employee shareholders are awarded shares worth at least £2,000 in their employer company (there is no upper limit for the shares).

There is no requirement for businesses wishing to offer an employee shareholder contact to obtain HMRC approval or agreement.

HMRC has published guidance on the new employee shareholder status on their website.



Date: 19th September, 2013
Author: Cathy Corns


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