Employee Shares – Growth & Infrastructure Act 2013

[fishtank]

LTB 530/13 Employee Shares – Growth & Infrastructure Act 2013 and Auto Enrolment


No. 530/13
Ref: 21003
Date: 30th July 2013
TO: ALL BRANCHES WITH POSTAL MEMBERS
Dear Colleague

Employee Shares - Growth & Infrastructure Act 2013 and Auto Enrolment
We have received a number of enquiries about the potential impact of Employee Shareholder provisions within the Growth and Infrastructure Act 2013. These enquiries relate to a part of the Act which sets out that under certain conditions employees who receive free shares do so on the basis of accepting fewer employment rights.

We have raised this directly with the Government, the company and our own Lawyers and the advice that we have received from all these parties is that the provisions of the Act would not apply in this case.

The Government has now stated in writing that any shares subsequently offered to Royal Mail employees will be covered by an approved HMRC Share Incentive Plan and that any such scheme is exempt from the provisions of the Act. We are aware that there is still some scepticism about whether or not this is the correct interpretation of the Act and the Union will continue to check this information with our Lawyers.

It has also been confirmed by the Government in writing that if employees were to receive free shares in the future, eligibility will be on the basis of automatic enrolment i.e. they will be deemed to want to receive free shares, unless the individual chooses to opt out of the scheme. As such there is no requirement for a registration process.

Any enquiries on the above LTB should be addressed to the DGS (P) Dept.
Yours sincerely


Dave Ward
Deputy General Secretary (P)
COMMUNICATION WORKERS UNION

URGENT INFORMATION FOR MEMBERS

[mandelsons_toenail]

[supernova]

So what are the eligibility criteria? Does anyone know? Seems they're keeping that a bit quiet.

[Glenno]

So what are the eligibility criteria? Does anyone know? Seems they're keeping that a bit quiet.

employed on 10th July 2013

[UnhappyGremlin]

So what are the eligibility criteria? Does anyone know? Seems they're keeping that a bit quiet.

employed on 10th July 2013

And to be still in post when they are issued.

[Glenno]

So what are the eligibility criteria? Does anyone know? Seems they're keeping that a bit quiet.

employed on 10th July 2013

And to be still in post when they are issued.

And pro-rata of course