The government are proposing a widening of the ban on exclusivity clauses in workers’ contracts. Since 2015, any clause insisting on exclusive service (i.e. a clause preventing a worker undertaking work for another person or company) has been unenforceable against those who have a zero hours contract. The government’s proposal made on 9 May would extend the ban to all workers whose earnings are below £123 per week.
Legislation for these reforms will be laid before Parliament later this year.
The government anticipates that this will help those who, for example, wish to work several relatively low-paid shift roles such as in retail or hospitality.
Jonathan Mumby comments:
We question the level of impact this proposed change will have given that it is likely those earning below £123 per week may already work subject to a zero hours contract. In any event, in anticipation of new legislation, employers may wish to consider their standard terms and conditions for part time employees and consider whether it will be necessary to remove exclusivity clause which could fall foul of the expected change.
If you would like to know more about the implications on your own employment contracts, please do not hesitate to get in touch with a member of our Employment team here.
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