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Planning for Employee Ownership Trusts 5 Top Tips

07 November 2022

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. Under an EOT, the shares are sold to the trustee in order for them to be permanently held for the benefit of the employees of a company or group of companies. Crucially, the EOT must benefit all employees on equal terms based on certain criteria. The criteria include hours worked, length of service and level of remuneration.

Follow our top tips for shareholders looking to sell to an EOT.

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