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Jenny
Jenny, Solicitor
Category: Law
Satisfied Customers: 6346
Experience:  Qualified Solicitor specialising in Employment Law and general legal matters. Please start your question For Jenny Only
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I am currently on long term sick having suffered from a serious

Customer Question

I am currently on long term sick having suffered from a serious injury from an accident. I get 2/3 salary from the insurance policy of the company I work for. It's a Canadian company that has bought a British company and is now trading in the UK. My question is of I buy shares in the company (it's listed on the Canadian Stock Exchange) does that forgo some of my rights such as redundancy packages i.e would it be easier for the company to get rid of me. I remember a debate in Parliament stating that it would encourage share partnership but that would then decrease employment rights - I'm not sure that this has become legislation. Thanks.
Submitted: 4 years ago.
Category: Law
Expert:  Jenny replied 4 years ago.

taratill :

Hello my name is Jenny and I am happy to help you today, are you based in the UK ?

JACUSTOMER-vdmdyy0f- :

yes

taratill :

From 1 September 2013, it is possible to become an employee shareholder. Simply buying shares does not give you this status and mean that you lose employment rights.

taratill :

In order to become an employee shareholder you must be given at least £2000 worth of shares in the business, there is guidance on the status on the following website. https://www.gov.uk/employee-shareholders

JACUSTOMER-vdmdyy0f- :

the company i work for is 70000 people world wide

JACUSTOMER-vdmdyy0f- :

it is the employee shareholder scheme...

taratill :

The number of employees makes no difference, you cannot be forced to take the shares in exchange for the status if you are a current employee.

JACUSTOMER-vdmdyy0f- :

you just pay in each month how much you can afford

taratill :

I am sorry I have no idea why my last sentence did not come through properly to you.

Expert:  Jenny replied 4 years ago.
Just to be clear has your employer told you you will lose rights if you buy the shares?
Customer: replied 4 years ago.

No-one has said anything. I was reading a while back that the government wanted to make it easier for companies to 'get rid' of people and that a share scheme was giving a big benefit to an employee so the employers should also have increased rights - redudancy is one of them, especially for someone who is off on long term sick. I want to buy shares in the company but of course don't want to lose or diminish my current rights.

Expert:  Jenny replied 4 years ago.
Ok buy simply buying shares you will not lose rights so you don't need to worry.

The 'status' is in place but only applies if you are given at least £2000 worth of shares in exchange for your rights.

As this has not happened and you are simply exercising your right to buy shares you will not lose any rights.

If you have any further questions please do ask. If I have answered your question I would be grateful if you would take the time to rate my answer. Thank you and all the best.
Customer: replied 4 years ago.

If you don't mind, I will research the exact policy the company offers and then come back to you. I would also like to ask if all the details we are detailing are confidential and not posted on the internet? I would prefer it that way. Thanks. Be in touch soon.

Expert:  Jenny replied 4 years ago.
yes no problem, this is a public internet site so it is not confidential,you are not identifiable though from this question though as your name and your company name has not been used.

Many companies do offer the right to buy shares, which is quite separate from this employee share status scheme. If you have not been consulted with that your status would change and have not been given at least £2000 of shares your status will not have changed.

I'll wait to hear from you.