Osborne offers workers the chance to give up rights for shares...

People who accept the shares will have to waive their rights to redundancy or to sue for unfair dismissal and will not be able to request flexible working hours. The Treasury will not levy capital gains tax when workers sell their shares, which can be worth between £2,000 and £50,000.

The scheme, which is intended to help smaller start-up companies, was unveiled by the Chancellor during his speech to the Conservative Party conference. It led to claims that the Government is trying to bribe people to surrender employment rights.

Mr Osborne said such measures are essential to encourage entrepreneurs fearful that their businesses can be destroyed by onerous employment regulations. “We will be the Government for people who aspire,” the Chancellor said. “Like the people who start a new business, and who work in that business and want to own shares in it. I’m a low tax, small government Conservative.”

Sources close to Mr Osborne said the voluntary scheme will be open to any limited company. They expect hundreds of thousands of employees to sign up within the next few years, at a cost to the Treasury of about £100 million a year.

The plan is understood to have been agreed with Liberal Democrats, including the Business Secretary, Vince Cable, and is expected to be fast-tracked through Parliament this autumn for introduction in April 2013.

I think this could turn out to be as big as Margaret Thatcher's 'Right to Buy' housing scheme was and as long as its not forced on employees, the thought of employees pulling entirely in the same direction to achieve business success could be really good for everyone involved. After all, some of the red tape businesses have bound up by in recent years, makes it less likely that businesses will recruit staff and adds huge cost to the running of businesses.