Government bans exclusivity clauses in zero-hour contracts

Employers who do not guarantee workers any hours of work, but prevent them from working for another employer, could face legal ramifications after the exclusivity clause in zero hours contracts was banned from today (May 26, 2015).

The ban on these controversial contracts is contained in a provision in the Small Business, Enterprise and Employment Act. It was first proposed by the outgoing coalition Government and comes into force after a lengthy public consultation.

Freelancers had initially been concerned that they could be caught up in any measures which were aimed at protecting the more vulnerable members of the work-force rather than the contracting professionals.

Many people, including the Labour Party and the trade unions had objected to these zero-hours contracts where employers could seek exclusivity from an individual even though they were not prepared to commit to regular employment.

It now becomes a legal offence to prevent staff on zero-hour contracts from seeking other employment.

Nick Boles, Minister at Department of Business, Innovation and Skills 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."

CBI

Neil Carberry, CBI Director for Employment and Skills, also praised the law, calling it 'a proportionate response to tackling examples of poor practice', but issued a warning that further regulation must not damage the flexible labour market.

Neil Carberry, CBI Director for Employment and Skills said: "Banning exclusivity clauses in zero hours contracts is a proportionate response to tackling examples of poor practice.

"But any further regulation must not damage our flexible labour market, which is an important success story of our economy, benefiting employers and employees alike."