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Exclusivity clauses to be banned amongst the lowest paid

Posted
May 13, 2022
Employment Law

A few years ago, the government legislated to make exclusivity clauses in zero hours contracts illegal. It has now decided to take this initiative one step further.

What's this all about?

Although such provisions were not widely used, in 2015 the government concluded that it should no longer be permissible for employees engaged under zero hours contracts to be prevented from working for other employers. As a result, a ban was introduced on so-called ‘exclusivity clauses’. 

In the last few days, the Department for Business, Energy & Industrial Strategy has announced plans to extend this ban to as many as 1.5 million low-paid workers, by outlawing exclusivity clauses within the contracts of any workers earning a guaranteed weekly income of £123 or less. For those on the national minimum wage, this represents about 13 hours’ work.

When will the change come in?

It is always difficult to predict with accuracy when changes of this nature will come into force. However, if the government’s press release is to be believed, they plan to bring the legislation before Parliament later this year.

Want to know more?

If this new measure could affect your business, click on the link below to read more:

https://www.gov.uk/government/news/lowest-paid-workers-to-be-given-flexibility-to-top-up-their-pay-under-government-reforms

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