June 26, 2014

WE’RE EXCLUSIVE…..NOT ANYMORE WE’RE NOT!

The government is banning exclusivity clauses in Zero Hours Contracts to ensure that workers have the freedom to work for more than one employer.

Its estimated that more than a million people work under Zero Hours Contracts which effectively allow employers to "pay as they go" with no obligation to offer staff work.  A worker may also turn down work if they want to.

The ban on exclusivity clauses is set to benefit some 125,000 Zero Hours Contract workers and follows government consultation which received over 36,000 responses. 83% favoured removing exclusivity clauses in Zero Hours Contracts following evidence that some unscrupulous employers abused their power and prevented their staff from working for another employer even though there was no guarantee of work. The government has also agreed to work with business representatives and unions to develop a code of practice on the fair use of Zero Hours Contracts by the end of 2014. It will also be carrying out further consultation on the issue.  The ban forms part of the Small Business, Enterprise and Employment Bill.

For more information on Zero Hours Contracts and how they could help your business please contact our specialist Employment & HR team.

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