Labour Share Fraction

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The Labour Share Fraction is the share of Surplus paid to Labour Shareholders.

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 Enterprises and Social Co-operatives

From V3.0 onwards, the fraction is set during the creation of rules in the FairShares Rules Generator, and this provides for a range of choices from 0.30 to 0.45.

In associations, this fraction (as is the case with Founder and User Share Fractions) determines the share of surplus Labour Members (as a group) can allocate to social objects without board approval.

The V3.0 rules generator does not permit rules to specify more than 0.4 for Investor Shareholders, and a sets the minimum payout to Labour and User Members at 60%. Typically, 70% or higher is paid out to people active in FairShares companies, and 75% of higher in FairShares cooperatives.

The total amount paid out to Labour Shareholders is called the Labour Share.


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