The appalling Shares for Rights scheme introduces a new employment status of 'employee/shareholder'. Employers will be able to give shares in the company in exchange for workers giving up their rights to claim unfair dismissal and redundancy payments. They will lose the right to request flexible working and would have to give longer notice when returning from family leave.

Prospect is fundamentally opposed to the scheme. We believe it will simply be a means of allowing unprincipled employers to buy workers' rights. The value of the shares can be between £2,000 and £50,000. It removes employment protection in exchange for minimal shares, which may in fact prove totally worthless. Workers will be left in a very precarious employment situation with no statutory protection.

These provisions in the Growth and Infrastructure Bill have twice been rejected by the House of Lords. There has also been exceptionally little support for the idea from business. Reports from the Commons today, suggest there was even very little support there.

The Government argues employee/owners will have new involvement in and commitment to their company, however this can already be done through good employee share schemes, which offer mutual benefits. By comparison the Shares for Rights scheme is totally one sided, giving the employer the right to determine the status and use this as a simple means of avoiding employment rights.

Prospect will argue vigorously against these contracts being offered in areas where we are recognised and will support individual members' at risk.

The Prospect response to the consultation on Shares for Rights argued strongly against this proposal.