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Exclusivity clauses

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Business Secretary Vince Cable has today announced plans to ban exclusivity clauses in zero hours contracts.

Some employers who use zero hours contracts to balance their workforce with business requirements include an exclusivity clause which prevents the employee from working for another employer - even if no work is guaranteed.

The proposed ban, which will affect some 125,000 according to the Department for Business Innovation and Skills (BIS), will allow workers to look for additional work to boost their income.

BIS is also looking to outlaw ways in which employers may try to evade the ban by, for example, offering one hour fixed contracts and will undertake further consultation on this.

The ban will be part of the Small Business, Enterprise and Employment Bill, which is being introduced to Parliament today (25th June). It comes after a consultation period earlier this year in which 83% of respondents were in favour of banning exclusivity clauses.

No date has yet been set for the implementation of the new rules.

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