What Employees Should Know About Their Role in an EOT-Owned Business

Employee Ownership Trusts (EOTs) are transforming the way businesses are owned and run in the UK. For employees, becoming part of an EOT-owned company can feel exciting—but it also raises a lot of questions.

If your company has recently transitioned to employee ownership, or you’re part of a team exploring the idea, this guide is for you. We’ll explain what it means to be part of an EOT, how your role might evolve, and why employee ownership can be a powerful step forward for your career, your team, and your workplace culture.

What is an EOT?

An Employee Ownership Trust (EOT) is a legal structure that allows a company to be owned by its employees, via a trust. The EOT becomes the controlling shareholder, typically holding at least 51% of the shares, on behalf of all employees. This model was introduced by the UK Government in 2014 to:

• Encourage long-term business stability

• Reward employees fairly

• Enable owners to exit without selling to external buyers

EOTs offer significant tax advantages for both business owners and employees, while promoting a more engaged and inclusive workplace culture.

Do Employees Own the Business Personally?

Not quite. Under an EOT:

• The trust owns the shares, not individual employees.

• You benefit collectively from the success of the business—usually through profit-sharing bonuses and greater transparency.

• There’s no cost to employees, and no shares to buy or sell.

The trust is run by trustees who act in the best interests of all employees, balancing commercial success with fairness and long-term sustainability.

How Does My Role Change?

The good news? Your day-to-day role likely won’t change overnight. But over time, you may notice a few key differences:

1. Greater Voice and Involvement

While you won’t be managing the company, many EOT-owned firms introduce:

• Employee forums

• Staff-elected trustee roles

• Consultation on key decisions

This doesn’t mean everyone votes on strategy, but your voice matters—and the leadership team is more accountable to the wider workforce.

2. Increased Transparency

EOT-owned businesses tend to:

• Share more financial information

• Involve staff in goal setting

• Celebrate success collectively

This builds trust and a stronger connection between teams and outcomes.

3. Profit-Sharing Opportunities

Employees can receive annual bonuses of up to £3,600 tax-free (subject to eligibility and profits), in recognition of their role as beneficial owners. Unlike traditional bonus schemes, this is available to all qualifying employees and reflects the company’s overall performance, not just individual targets.

What Responsibilities Do I Have?

With ownership comes a sense of shared responsibility. While you’re not expected to run the business, you are part of something bigger. This means:

• Taking pride in your work and contributing to success

• Supporting a culture of collaboration and fairness

• Being engaged in company-wide communications and initiatives

Some employees may also have the opportunity to serve as employee trustees—a role that provides insight into governance and helps ensure decisions reflect staff interests.

Why Does This Matter?

Becoming employee-owned isn’t just a legal change. It’s a cultural shift. Studies have shown that employee-owned businesses often see:

• Higher staff retention

• Improved performance

• More resilient business models

For you, this could mean:

• Stronger job security

• A greater sense of purpose and belonging

• A real stake in the future of the business

Being part of an EOT-owned business is about more than just profit-sharing. It’s about working in a business where people matter, where your contribution counts, and where long-term success is shared—not sold.

If your company is already EOT-owned, take the opportunity to get involved and help shape its future. If you’re just learning about the model, ask questions, engage with the process, and understand how this can benefit not just the business—but you personally.

Want to understand how EOTs work in your business or explore the model for your company? Visit EOT.co.uk for practical guides, case studies, and expert advice.