People and Pensions

Employment Law

Increasingly clients are looking for practical and accessible advice on the full range of employment and HR compliance matters. Our specialist employment law member firms provide services on the following:

 

·         Employment contracts/service agreements

·         Staff handbooks and employment policies

·         Employment Tribunals

·         Employee tax (with reference to specialists where appropriate)

·         Consultancy agreements

·         Compromise agreements and settlement of work related disputes

·         Restructuring and redundancy programmes

·         Day to day HR advice e.g. re holiday/maternity etc/sickness/grievances and disciplinaries

·         Negotiating senior executive terminations

·         Post employment restrictive covenants (non-poaching/dealing/compete/solicit/protection of confidential information)

·         Transfer of Undertakings (TUPE)

·         Diversity, equal opportunities and discrimination

·         Industrial relations/employee relations

·         Employment support on corporate transactions including due diligence, employee warranties and indemnities

·         Maritime employment law

·         In house HR training

 

To discuss any of the above services, please contact This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Employee Share Schemes

An employee share scheme describes any arrangement under which one or more employees are able to acquire shares in the company they work for. Spectrum can provide access to lawyers specialising in employee share schemes and associated matters.

 

A company will normally set up an employee share scheme for at least one of the following reasons:

 

·         Attract new employees

·         Retain existing employees

·         Provide reward for long term business performance

·         Incentive for employees to go the extra mile

·         Create a sense of ownership and common purpose amongst employees

 

An employee share scheme can be for selected employees only, or for all employees.  

 

Ways in which employees may acquire shares include:

•     Share options
•     A promise of free shares in the future (perhaps conditional on business performance and/or the employee staying with the company)
•     Purchase of shares (sometimes at a discounted price or with payment deferred)
•     Purchase of a special type of “employee share”     

It is estimated that over 5 million UK employees participate in an employee share scheme. A range of tax advantages may be available (depending on the scheme), including:

•     18% tax rate on financial gains from share options
•     Income tax relief on shares purchased
•     No income tax or National Insurance on free shares

Conditions apply to each of these.

 

Research throughout the world, and the UK Revenue’s own research, has found a positive connection between an employee share scheme and company performance.

 

Share options are a very common form of employee share scheme. They are normally simple to set up and operate, and easily understood by participants. UK tax rules ensure that millions of share option holders only pay capital gains tax on their option rewards, at a current rate of no more than 18%.

 

An example of a share option:

Charles is granted an option to purchase 1,000 shares in the company he works for.  The price he must pay (the option exercise price) if he does exercise his option is fixed at £1 per share, the current market value of a share in that company.

Three years later, each share is now worth £5 (because the Company has grown successfully with improving profits).  If Charles decides to exercise his option, he pays the option exercise price of £1 for each share, acquiring for a total price of £1,000 shares which are at that time worth £5,000.  He makes an option gain of £4,000.  This option gain is a “paper gain” until he is able to sell the shares.

If he retains the shares after exercising his option, they could either increase in value further, their value could stay the same or (if the business fares less well) their value could decline.

 

To discuss any of the above services, please contact This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Pensions

Business clients, trustees and private clients may all require advice on pensions. Spectrum can provide access to lawyers specialising in providing legal services on the following:

·         Corporate Transactions

·         Trust Deeds and Rules

·         Rules Members’ Handbooks/Announcements

·         Pensions Ombudsman Complaints

·         Pensions Litigation

·         Winding Up

·         Surplus and Deficit Management

·         Switching Final Salary (defined benefit) to money purchase (defined contribution)

·         Divorce

·         Member Nominated Trustees and Member Nominated Directors of Corporate Trustees

·         Independent Trustees, Individual and Corporate Trustees

·         Scheme Mergers

·         Investment Management Agreements

·         HMRC Registered Pension Scheme status – Unauthorised Payments

·         Sex and age Discrimination

·         Death Benefits – Discretionary Powers of Trustees

·         Control of Investments

·         Occupational Schemes

·         Personal Pension Schemes

·         Stakeholder Pension Schemes

·         Contracting Out

·         Scheme Transfers (Bulk and Individual)

·         Unapproved Arrangements

·         TUPE Transfers

·         Scheme Novations

·         Pensions Regulator Issues – Compliance – Complaints

·         Pension Protection Fund and Financial Assistance Scheme Issues – Levies/Entry/Financial Support Directions, Contribution Notices

·         Whistle Blowing

·         Small Self Administered Schemes ("SSAS")

·         Closed and Paid up Schemes

·         Scheme Amendments

·         Discretionary Benefits – Augmentations

·         Ill Health Pensions

·         Employer’s Duties – Good Faith – Debt on Employer etc

·         European Community Law

·         Trustees’ Culpability – Exoneration Clauses and Statutory Provisions

·         Pensions Registry Disclosure of Information

·         Internal Dispute Resolution

·         Dual Benefit/Section Schemes

 

To discuss any of the above services, please contact This email address is being protected from spambots. You need JavaScript enabled to view it.