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Clause 23 - Employee owners

Part of Growth and Infrastructure Bill – in a Public Bill Committee at 12:15 pm on 6th December 2012.

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Photo of Ian Murray Ian Murray Shadow Minister (Business, Innovation and Skills) 12:15 pm, 6th December 2012

That is a critical question, and I am grateful for it. There is a great fear that employees in a particular company or organisation will be transferred en masse to a related organisation, and that that transfer will have attached to it the condition that the employment contract is dissolved and a new employee-owner contract is put in place. An employee in those circumstances will be given little option but to transfer, and it is important to get clarity from the Minister on the guidance that will be given and on what will be put in place to prevent such things. An overseas holding company could set up a separate subsidiary company that deals merely with the human resources part of the holding company. It would then be able to transfer in people with shares that may not have the same value as those of the holding company. That might force employees into a different employment relationship, and the Minister needs to give not only the Opposition but businesses and employees, assurances on that.