I beg to move,
That this House does not insist on its amendment 25E, to which the Lords have disagreed, and agrees with the Lords in their amendments 25H rev and 25J in lieu.
On Tuesday when we considered this issue the House agreed to two amendments to the employee shareholder clause. First, we ensured that individuals would receive written particulars to explain the employment rights that are not associated with an employee shareholder job. Those particulars will also explain the rights attached to shares that are given as part of that role. Secondly, we amended the clause to ensure that individuals had the space and time to consider whether or not to accept the job.
Yesterday, the other place agreed further amendments to help ensure that individuals fully understand what those employee shareholder jobs will mean for them—both the risks and the rewards. Individuals who are offered employee shareholder roles must now receive independent advice before they can accept the job. That advice can be given only by a solicitor, a barrister, a fellow of the Institute of Legal Executives employed in a solicitor’s practice, a certified adviser in an advice centre or—I am sure Opposition Members will welcome this—a certified trade union official. A person employed by the company, such as an in-house lawyer, cannot give that advice; it must be independent. In addition, the company must pay any reasonable costs incurred in obtaining that advice, even if the individual does not take up the offer of the employee shareholder job.
The amendments also clarify the process of becoming an employee shareholder. When offered an employee shareholder role, an individual must be given the written particulars in advance of receiving independent advice. We have also made it clear that the seven calendar day consideration period starts only once the individual has received the advice.
Those amendments confirm our intention that the new employment status is wholly voluntary. I have made it clear throughout the debates on the clause in the House and in Committee, and my hon. and noble Friend Viscount Younger has made it clear in another place, that we do not want people to be coerced into the new roles. It is important that they should agree to accept an employee shareholder job only when they understand what it means for them.
To that end, we have published guidance in draft. In response to the concerns expressed by some of my noble Friends, we have strengthened the measures by saying that there should be special protection for those on jobseeker’s allowance—they cannot be mandated to take that type of employment status. We have provided a written statement of the particulars and a cooling-off period, and we have now provided access to independent legal advice.
The shadow Secretary of State for Business, Innovation and Skills, the hon. Member for Streatham (Mr Umunna), kept pressing me on Tuesday on what I meant what I said that we would reflect on the concerns expressed in
the other place. The new measures are the results of such reflection. We have reflected on and met those concerns.
I pay tribute to Lord Pannick and to my noble Friends Lord King of Bridgwater and Lord Forsyth. Lord Pannick has said:
“It is impossible to see what further protections this House could usefully add.”—[Official Report, House of Lords, 24 April 2013; Vol. 744, c. 1464.]
The House should support the further amendments to clause 27, so that it can form part of this important pro-growth Bill and provide companies and individuals with a new employment option.