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Consider the merits and pitfalls, for employers and employees, of financial participation schemes

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In 2000 employee financial participation was more widespread in the United Kingdom than in any other member of the European Union, excepting France. Between the late seventies and 2000, more than 3.5 million employees have owned shares in their workplace. Similarly, between 1987 and 2000, 3.6 million employees have taken part in profit-related pay schemes (Pendleton, 2000: 341). Such a development occurred particularly thanks to the legislation which from 1978 has provided ?a set of tax benefits to employees and to firms participating in profit sharing or share ownership? (Pendleton, 2000: 241).

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