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Ban on Exclusivity Clauses in Zero-Hour Contracts

Ban on Exclusivity Clauses in Zero-Hour Contracts

At the end of May 2015, sections of the Small Business, Enterprise and Employment Act 2015 came into force, including the provision which makes the use of exclusivity clauses in zero hour contracts unenforceable.

A key part of the Conservative's election campaign was a promise to ban clauses in zero hours contracts requiring exclusivity from the worker and they have been quick off the mark in bringing this piece of legislation into force.

A zero hour contract is traditionally used for casual working, it does not guarantee the worker any work and pays a worker only for the work that they have actually carried out. Although they bring benefits to workers and employers alike, they have been brought under fire for the abuse that workers could be subjected to by their use.

The business minister, Nick Boles said: "Exclusivity clauses in zero hours contracts prevent people from boosting their income when they have no guarantee of work. Banning these clauses will give working people the freedom to take other work opportunities and more control over their work hours and income. It brings financial security one step closer for lots of families."

The legislation also provides the Government to implement further provisions in relation to zero hours contract and it will be interesting to see whether they choose to do so.

Although this piece of legislation has been brought in to protect workers, what remains to be seen is how many employees will actually take steps to enforce their new rights against their employer or whether they will be put off by the employment tribunal fees.

Employers should consider whether their existing zero hours contracts are fit for purpose given the recent changes, and consult with employees about removing any exclusivity clauses in zero hour contracts.

Authors

TC Young

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