New employees to waive employment rights

The Chancellor of the Exchequer, George Osborne, has announced plans for the introduction of a new type of employment contract, known as an ‘owner-employee’ contract.

Under this new type of contract, new employees will be required to give up their employment rights on unfair dismissal, redundancy, and the right to request flexible working and time off for training. They will also be required to provide 16 weeks’ notice of a firm date of return from maternity leave, instead of the usual 8. In return, they will be given between £2,000 and £50,000 of shares that are exempt from capital gains tax.

Legislation to bring in the new owner-employee contract will come later this year so that companies can use the new type of contract from April 2013. For further information, please click here.

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