Lords reject George Osborne's plan for employees to sign away their legal rights in return for receiving shares in their companies
George Osborne suffered an embarrassing rebuff last night after peers threw out his plan for employees to sign away their legal rights in return for receiving shares in their companies worth as little as £2,000.
The scheme - announced at the last Conservative conference - was rejected by the House of Lords by 232 to 178 votes amid widespread criticism.
Lord O'Donnell, the former head of the Civil Service, said: “In the old days, the price of slavery was 20 or 30 pieces of silver. Is it now £2,000?”
Under the Chancellor's proposal, companies will from April be able to offer staff between £2,000 and £50,000 in tax-free shares if they surrender their rights to claim unfair dismissal, to redundancy pay, to request flexible working and time off for training.
The former Cabinet minister Lord Forsyth of Drumlean, one of several senior Conservatives to criticise the plans, described the idea as “ill-thought through, confused and muddled”.
He said: “I am astonished the Coalition would even think of bringing forward such a measure.”
The Government will now have to decide whether to overturn the defeat in the Commons.
- 1 PlayStation and Xbox hacked by Lizard Squad
- 2 Christmas comes early to Hong Kong, as millions of bank notes spill out onto busy street
- 3 The 'Black Museum': After 150 years, public can visit police’s grisly crime museum
- 5 Vagina canoe artist defends herself over ‘obscenity’ charges
PlayStation and Xbox hacked by Lizard Squad
Antonio Martin shooting: Black teenager may have tried to ambush patrolman, says police officer's lawyer
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
Boxing Day snowfall set to push even more bargain-hunters online for sales
The 'Black Museum': After 150 years, public can visit police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Alex Salmond has 'broken his word to the Scottish people' says Scottish Lib Dem leader
£40000 - £43000 per annum + benefits: Ashdown Group: Senior Marketing Executiv...
£40000 - £43000 per annum + benefits: Ashdown Group: An international organisa...
£25000 - £30000 per annum: Ashdown Group: Internal Recruiter -Rugby, Warwicksh...
£70000 - £75000 per annum + benefits: Ashdown Group: Marketing Manager/Marketi...