Employee Shareholder Contracts guidance publishedPrint publication
In our July employment briefing, we reported on the new employee shareholder status contracts that came into force on 1 September 2013. In stark contrast to the amount of publicity and debate on this subject, reported take up so far has been negligible! The Government has now published guidance on the new contracts as well as separate guidance on the income tax and capital gains tax rules and exemptions applying to awards of shares under the new status. Interestingly, the guidance states that if an employee shareholder sells their shares, their employment status does not automatically revert back to that of ‘normal’ employee so it would appear that there is no requirement that an individual employed as an ‘employee shareholder’ must actually continue to hold shares after the initial grant and any subsequent disposal.