The Government's proposals to create a new employment status of 'employee shareholder' are currently progressing through Parliament at a rapid pace, despite a widespread lack of enthusiasm. Certain aspects of the scheme have been clarified, and various amendments have been tabled.

  • The new status is to be known as 'employee shareholder' rather than 'employee owner';
  • the shares will need to be fully paid up;
  • shares will need to be worth at least £2,000;
  • no consideration must be given for these shares other than the individual agreeing to be an employee shareholder;
  • forfeiture conditions will be contractually agreed between the employer and employee shareholder;
  • non-UK registered companies will be allowed to use employee shareholder status;
  • where the employer is a subsidiary, it will be possible to issue parent company shares to employee shareholders rather than employer shares;
  • the upper limit of £50,000 which had been proposed on the value of shares will be removed, although the exemption from CGT will only apply up to £50,000;
  • employee shareholders will be required to give 16 weeks' notice of return from additional paternity leave, to be consistent with the proposals in relation to maternity leave;
  • there will be guidance on the new status for employers and employees;
  • existing employees who refuse to become employee shareholders will have statutory protection from dismissal or other detriment.

And Finally...

With effect from 1 February 2013, the maximum compensatory award for unfair dismissal increased from £72,300 to £74,200. The maximum amount of a week's pay, which is used to calculate statutory redundancy pay and the basic award for unfair dismissal, rose from £430 to £450. This means that the maximum unfair dismissal award is now £87,700. These new rates apply where the event giving rise to the compensation occurred on or after 1 February 2013.

The Government has announced that statutory sick pay, maternity pay, paternity pay and adoption pay are to increase by 1% each year for three years from April 2013.

On 1 December 2012, the Criminal Records Bureau merged with the Independent Safeguarding Authority to become the Disclosure and Barring Service. This merger means that some of the terminology associated with CRB checks has changed. For example, CRB checks have become 'DBS checks', and an enhanced CRB check with barred list check has become an 'enhanced check for regulated activity'.

The Commission which was set up to investigate the creation of a UK Bill of Rights has published its report, 'A UK Bill of Rights, the Choice Before Us.' Although a majority of the Commissioners was in favour of replacing the Human Rights Act 1988 with a UK Bill of Rights, the report concludes that, largely due to heightened sensitivity and complications over devolution issues, the time is not right for this to happen.

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