Wrong advice on signing away employment rights

It was a little strange this week that the Government got through its beazer scheme to encourage employees to sign away employment rights in return for CGT free shares in their employers as the Guardian reported.

It looks like the concession which got the plans through Parliament was a promise that the employees concerned would have access to free, independent legal advice.

Not being a lawyer, I still wonder what this legal advice would be. Like this – the law says you can do this. (Well unless there is a constitutional clash with other laws, in which case employees will need to seek the advice of the Supreme Court.)

Surely it should have been financial advice. As in… Well it is quite difficult to put a value on those employment and redundancy rights, but they certainly have some value in protecting your income a little.

This is compared with a shareholding in your firm which does, to an extent, double up your potential liability. They could be worth quite a bit, but if the firm folds then you lose your job and your shares.

The Money Debate isn’t suggesting that IFAs would be falling over themselves to offer advice on a very tricky area, but surely it should have been independent financial advice, if any advice at all was to be required.





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