Waive Employment Rights for Shares
- Posted by admin
- 27 September 2013
The formation of a new employment policy for workers is being implemented in the UK. Employees are able to become shareholders in the companies they work for when they agree to work with fewer rights. For a minimum share of £2,000, employees may lose rights such as the ability to pursue a case against their own unfair dismissal due to discrimination. Economists wonder if the incorporation of a similar plan might be popular or successful for workers in Singapore.
Rights for Shares
This new employment policy allows workers to own a share of the company they work for, providing them with economic stability and a say in their company as a shareholder. To gain these benefits, they would be forfeiting certain rights that are otherwise guaranteed to employees by law. They would be unable to get time off for training and prohibited from asking for flexible work hours. Mothers would also be required to double their notice time for maternity leave. The registration for this contract is open to all employees in participating companies, but those already hired could opt-out while the company can create a contract to have all potential employees abide by these rules.
Lack of Interest
Experts say that there is a general lack of interest in the incorporation of this employment policy. While some employers are for the formation of this idea, most are not willing to get behind the venture because of all the red tape involved for such a complex system. While the employment policy was created to help smaller, growing businesses expand, many employers believe that employees would also not work for fewer rights. Very few businesses are showing interest in the plan, with only a dozen firms voicing support and potential use. Labor unions are voicing complete opposition against the plan, and those affiliated with the unions are refusing to take part in order to appease workers and maintain rights.
Application in Singapore
Economists wonder if this employment policy would be successful as an application in Singapore. Some interest in the policy exists, as employees who participate would be receiving anywhere from £2,000 to £50,000 of shareholder benefits without having to pay a capital gains tax for the funds. The plan may be attractive to younger workers just joining the job market especially, who do not have families to care for yet but would benefit from becoming a partial business owner through this policy. It could also help instigate company growth and the production of new businesses in Singapore, providing an incentive for entrepreneurs to take more risks in building their corporations in the country.
Waiving rights for shareholder benefits is a new and unique idea that has its pros and cons. Many workers believe that having the policy as an option but not as a contract obligation is a welcome idea, and say they would be willing to consider it under that light. Government officials are split between supporting and being against the plan, though only time will tell how well corporations in the UK and beyond adopt the plan for use.