28.05.15 Government Bans Exclusivity Clauses in Zero Hours Contracts
28 May 2015
28 May 2015
Legislation proposed by former Business Secretary, Vince Cable, to ban exclusivity clauses in zero-hours contracts has now come into force.
Employers who engage staff on zero-hours contracts and prevent them from working for another employer can now face legal ramifications under a provision in the Small Business, Enterprise and Employment Act, section 153.
Before 26th May 2015 employers were not prohibited from seeking exclusivity from an individual as it was considered a contractual matter between an employer and the individual. However, 83% of respondents to the Government consultation voted in favour of a ban on exclusivity clauses and this has resulted in it being illegal to prevent staff on zero-hours contracts from seeking other employment.
Banning exclusivity clauses will allow people to boost their income with simultaneous work opportunities when they have no guarantee of work, bringing more financial security.
Many employers use zero-hours contracts in a way that benefits both the employer and the individual by providing flexibility. However this ban will stop ‘rogue’ employers who exploited the contracts.
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