How can we help?


Clarkslegal proudly supports National Employee Ownership Day

Clarkslegal, a leading commercial law firm, is thrilled to celebrate National Employee Ownership Day. This annual event falling on 21 June highlights the significant benefits of employee ownership and the positive impact this has on businesses, employees, and the wider economy.

What is employee ownership?

Employee ownership is a business model in which employees of a company have an ownership stake in the company, often resulting in increased job satisfaction, productivity, and company loyalty. One popular form of employee ownership is the employee ownership trust (EOT). An EOT is a trust established to hold a controlling interest in a company on behalf of its employees. This structure offers several advantages, such as tax benefits, long-term stability of the business, and enhanced employee engagement. The EOT must benefit all employees on equal terms based on certain criteria, such as hours worked, length of service and level of remuneration.

At Clarkslegal, we are dedicated to promoting and supporting the growth of EOTs. We believe that employee ownership not only fosters a sense of community and shared purpose within businesses, but also drives improved performance and sustainable growth. Our commitment to this initiative is demonstrated through our extensive experience and success in helping companies transition to employee ownership models.

Some of our recent EO successes

  • An innovative tech company establishing an employee ownership trust to attract and retain top talent while aligning the interests of the employees with the long-term goals of the company.
  • A well-established investor company transitioning to an employee-owned model, ensuring the preservation of jobs and the continued legacy of the business.
  • Setting up a corporate trustee for a trust created for the benefit of the employees of an established home-improvement business

Employee Ownership Day is an annual celebration in the UK that showcases the benefits and impacts of employee ownership.

Our clients have consistently praised our dedication and expertise in guiding them through the complex process of establishing EOTs.

By widening ownership of the business to its employees Intec is securing the future of the business, including its ethos, values and culture. Tim and I also strongly believe the people best able to run – and indeed own – the business, are those who work for it.” – Stephen Joseph, Intec Systems Limited.

Our corporate and M&A solicitors have experience in transitioning business into employee ownership, including through EOT’s, both with and without third party funding. If you have any questions, please contact our Corporate and M&A Partner Stuart Mullins.   

About this article

This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Sana Nahas

Trainee Solicitor

View profile

‪+44 118 960 4611

About this article

Read, listen and watch our latest insights

  • 08 July 2024
  • Corporate and M&A

Navigating corporate transparency: ECCTA reforms series

This is the second article in a series exploring the changes brought by the Economic Crime and Corporate Transparency Act 2023 (ECCTA).

  • 14 November 2023
  • Corporate and M&A

A Brief Reminder of the Separate Legal Personality of Companies, Limited Liability and Derivative Claims

It is long-established under English law that private companies limited by shares have separate legal personality to their shareholders and directors.

  • 08 October 2023
  • Corporate and M&A

When do Company Directors have to consider creditors?

Due to the economic challenges the UK is currently facing, it is especially important for company directors to consider and uphold the directors duties imposed on them by the law.

  • 11 September 2023
  • Corporate and M&A

Changes to the tax treatment of Employee Ownership Trusts

The government published a consultation on 18 July 2023 seeking the public’s views on its proposals to reform the tax treatment of Employee Ownership Trusts and Employee Benefit Trusts. Parties are invited to express their opinions via email via the government website until the consultation closes on 25 September 2023.

  • 28 April 2023
  • Employee Ownership Trust

Employee Ownership Trusts – Thames Valley Roadshow Prelude

This podcast is a prelude to the Employee Ownership Trusts (EOTs) Roadshow, which Clarkslegal is hosting at Thames Tower in Reading on 17 May in collaboration with K3 Tax Advisory, Quantuma, Shawbrook Bank and J Gadd Associates. 

  • 07 March 2023
  • Employee Ownership Trust

Planning for Employee Ownership Trusts 5 Top Tips

An Employee Ownership Trust (“EOT”) is a legal arrangement through which a trustee holds a controlling stake in a company for and on behalf of the employees of a company.