Employee ownership businesses
Employee ownership is where all employees have a ‘significant and meaningful’ stake in a business.
This means employees must have both:
- a financial stake in the business (eg by owning shares)
- a say in how it’s run, known as ‘employee engagement’
It’s easier for companies limited by shares to set up employee ownership.
Employees must have a say in how the business is run.
Different ways of engaging employees are suitable for different businesses, but can include:
- an employees’ council, or other consultation group
- a constitution defining the company’s values and its relationship with employees
- employee directors on the board, with the same responsibilities as other directors
- working with trade unions on issues like pay and conditions
Guidance and model documentation
Read the guidance and model documentation for more information about types of ownership and engagement.
There’s a separate guide for employees who want to request a move to employee ownership.