The government has announced that the ban on exclusivity clauses in zero-hours contracts is being extended to those who earn less than the lower earnings limit.
The ban on exclusivity clauses in zero-hours contracts came into force in May 2015 (that is where employers are not obliged to provide any minimum working hours and the worker is not obliged to accept any work offered).
This means that a zero-hours worker is not bound by any provision of a zero-hours contract which prevents them from doing work or performing services for another employer, or that it requires the employer’s consent for such work.
Following a consultation, the government has now announced it will extend the ban on exclusivity clauses to any contract where a worker’s guaranteed weekly income is on or below the lower earnings limit (LEL currently £123 per week).
As with zero-hours contracts, workers employed under such contracts will have the right not to be subjected to a detriment or unfairly dismissed for breaching an exclusivity clause.. It is understood that the government proposes to lay legislation before Parliament later this year.
When this happens you may need to amend your contracts of employment with all employees who are below the LEL. If you need help with this, please get in touch and we can then put the changes in place for you when the effective date is announced.
About the author
Award-winning HR consultant Helen Astill has considerable experience in all aspects of practical human resource management and development, gained from a variety of senior positions in both public and private sectors.
Cherington HR joined HR Solutions in July 2021, providing Cherington HR’s clients with a wider service offering and extensive additional experienced staff.