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

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.