The Chancellor of the Exchequer, George Osborne, has announced plans for the introduction of a new type of employment contract, called an ‘owner-employee’ contract.
With these new types of contracts employees would give up their rights on unfair dismissal, redundancy, the right to request flexible working and time off for training. Also included is the requirement to provide 16 weeks’ notice of a firm date of return from maternity leave, instead of the usual 8 weeks.
In exchange for this, employees will be given between £2,000 and £50,000 of shares that would be exempt from capital gains tax.
‘Owner-employee’ contracts will be optional for existing employees, but established businesses & new start-ups can choose to offer only this type of contracts for new hires.
Legislation to bring in the new type of contracts will come later this year so that companies can use them from April 2013.
You can read more in the government’s press release.