In general usage, an arrangement to provide benefits to employees (including executive directors, but not usually non-executive directors) in the form of shares, share options, interests in shares or other benefits derived from shares. The shares are usually shares in the employer company or a parent company of the employer. For more information, see Practice note, Employee share schemes: an introduction.

There is a statutory definition of "employees' share scheme" in section 1166 of the Companies Act 2006. An "employees' share scheme" benefits from certain exemptions from UK company law requirements and certain aspects of UK financial services law. For more information, see Practice note, Benefits of being an employees' share scheme (under Companies Act 2006).