25.06.14 Government to Ban Exclusivity Clauses in Zero-Hours Contracts

Business Secretary, Vince Cable, has revealed plans to ban exclusivity clauses in zero-hours contracts following a six month consultation. The consultation on zero-hours contracts, launched in December 2013, received over 36,000 responses. 83% were in favour of banning exclusivity clauses in zero-hours contracts.

The ban is to be part of the Small Business, Enterprise and Employment Bill which is being introduced to Parliament today (Wednesday 25 June). 

Exclusivity clauses prevent employees on zero-hours contracts from working for another employer, even if they have not been given any hours. The use of exclusivity clauses in zero-hours contracts undermines choice and flexibility for employees. The ban means individuals will now have the freedom to find work with more than one employer and will therefore have more opportunity to work more hours if they wish and boost their income. It has been estimated that the ban will benefit 125,000 zero-hours contract workers who are tied down by an exclusivity clause. 

However, further problems could still arise. For example, employers could evade the exclusivity ban by contracting their employees on one-hour fixed contracts. Vince Cable said preventing this scenario from happening will be discussed further within Government.

Vince Cable also announced that Government will;

• Work with business representatives and trade unions to develop a code of practise to ensure fair use of zero-hours contracts by the end of the year; and
• Review existing guidance and improve information for employees and employers using these contracts.

See our previous news items on zero-hours contracts;

18.09.13 Vince Cable Announces Consultation on Zero-Hours Contracts

19.12.13 Zero-Hours Employment Contracts Consultation