In the Media

Rights-forfeit advice

PUBLISHED April 29, 2013

Monday 29 April 2013

Employees are to be allowed to accept shares in their employer's business in exchange for surrendering employment rights, following a House of Lords agreement last week.

The Lords, which had rejected the plan on two separate occasions, accepted government concessions, including the need for employees to take independent legal advice before accepting shares.

Under the scheme, employers must pay for legal advice, regardless of whether the employee takes up ownership status. The advice must come from a lawyer with no connection to the employer's company and the employee will have seven days to decide whether to take up the offer.