Labour Share
The Labour Share of Surplus is calculated using the Labour Share Fraction defined in Clause 40, and can only be changed by Special Resolution in General Meeting.
In early versions of FairShares, the Labour Share Fraction was:
- 0.5 in Worker Co-operatives and Employee-Owned Social Enterprises
- 0.35 in Social Enterprise|Social Enterprises and Social Co-operative|Social Co-operatives
From V3.0 onwards, the share is set during formation by the FairShares Rules Generator. The range possible is 0.3 to 0.45.
In companies and cooperatives, it can be paid out as a dividend. In associations and partnerships, it is calculated and invested in projects that benefit Users rather than the workforce in associations and partnerships.
The Labour Share is calculated as follows:
[Surplus] x [Labour Share Fraction]
Each member's proportion of the Labour Share is allocated as follows:
[Labour Share] x (Member’s Labour Shareholding / All Issued Labour Shares).
For example, if the Labour Share is £11,000, and a member has 10 Labour Shares of 180 in issue, their share would be:
11,000 x (10/180) = £611.11
See also:
Return to the FairShares Glossary.
