Section 257MH The number of employees requirementF1

United Kingdom

(1)

If the social enterprise is a single company, the full-time equivalent employee number for it must be less than F2250 when the investment is made.

(2)

If the social enterprise is a parent company, the sum of—

(a)

the full-time equivalent employee number for it, and

(b)

the full-time equivalent employee number for each of its qualifying subsidiaries,

must be less than 250 when the investment is made.

(3)

The full-time equivalent employee number for a company is calculated by taking the number of full-time employees of the company and adding, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable.

(4)

In this section “employee”—

(a)

includes a director, but

(b)

does not include—

(i)

an employee on maternity F3, paternity F4, parental bereavement or neonatal care leave, or

(ii)

a student on vocational training.

Annotations

Textual amendments

F1: Pt. 5B inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 11 para. 1
F2: Word in s. 257MH(1)(2) substituted (with effect in accordance with Sch. 1 para. 14(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 1 para. 7
F3: Words in s. 257MH(4)(b)(i) substituted (18.1.2020) by Parental Bereavement (Leave and Pay) Act 2018 (c. 24), s. 2(2), Sch. para. 53; S.I. 2020/45, reg. 2
F4: Words in s. 257MH(4)(b)(i) substituted (17.1.2025) by Neonatal Care (Leave and Pay) Act 2023 (c. 20), s. 3(3), Sch. para. 53; S.I. 2025/41, reg. 2

Notes on Conditions relating to the social enterprise: general

Textual amendments

F2: Word in s. 257M cross-heading inserted (with effect in accordance with Sch. 1 para. 14(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 1 para. 6(1)