Employee Shareholder

An employee shareholder is someone who works under an employment contract and owns at least £2,000 worth of shares in the employer’s company or parent company.

Employee shareholders have most of the same employment rights as people who are workers and as people who are employees except below:

• Protection against unfair dismissal - apart from dismissal on grounds of discrimination and in relation to health and safety

• Statutory redundancy pay

• The right to request flexible working - except in the 2 weeks after returning from parental leave

• Certain statutory rights to request time off for training

They must give 16 weeks’ notice if they want to come back early from:

• Maternity leave

• Additional paternity leave

• Adoption leave

When you become an employee shareholder your employer must pay for an independent expert to give advice about the terms and effects of the employee shareholder agreement. This advice did not count as a taxable benefit.

For more information visit the HMRC site