Last week the Chancellor, George Osborne, MP, announced plans for a new kind of employment contract called an employee – owner.
This new contract is intended for use by companies of any size but is principally aimed at fast growing SME’s that want to create a flexible workforce. Under the new contract employees will be given between £2000 & £50000 of shares exempt from Capital Gains Tax – in exchange for giving up some of their UK rights including unfair dismissal, redundancy and time off for training to name a few.
John Thompson, Chief Executive, APHC commented: “The aim of the initiative is to assist newer SMEs in developing their business, we await the finer details due to be outlined under the government consultation that is expected to take place later this month in order to see how workable the proposition is in practice to our industry”.
For more details on this release please see the treasury website: http://www.hmtreasury.presscentre.com/content/detail.aspx?ReleaseID=426317&NewsAreaId=2