Surrendering employment rights for shares

You will no doubt have read in the press about the Government legislation currently going through Parliament for employees to give up their employment rights in return for shares.

The House of Lords twice rejected the bill but the Government recently amended the bill to include the need for employees to take independent legal advice before accepting shares which the Lords accepted.

As an employment law solicitor, I am well used to providing advice on compromise agrements at termination of employment and giving independent advice on the consequences. Soon it looks like I will be doing it for employees who have seven days to decide whether to take up the offer of taking shares in return for giving up their rights. The good news is the employer must pay for the advice as with compromise agreements but regardless of whether the employee proceeds.

One does wonder how popular such a scheme might be in any event?