Evaluating the United Kingdom's Employee Shareholder Status Provisions in Context of the South African Position

In 2013 the United Kingdom created a new regime for employee shareholders, enacted in section 31 of the Growth and Infrastructure Act, 2013 and by inserting a new section 205A into the Employment Rights Act, 1996 (ERA) and which makes incidental amendments. In this regime, the employee becomes an employee shareholder and is to receive shares to the value of £2 000 and such individual will then waive rights normally found in the ERA, which includes protection, such as the right not to be unfairly dismissed. The employee is still protected by section 94 of the ERA against automatically unfair dismissal and termination of employment in contravention of the Equality Act 2010. Section 205A expands the list of automatically unfair reasons for dismissal to include the refusal to accept an offer to become an employee shareholder. Employee shareholders are subject to longer notice periods regarding their return from maternity leave, as well as parental or adoption leave