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UK Government Bans the ‘Exclusivity Clause’ from Zero Hour Contracts

by Sat Sindhar

May 27, 2015

There have been several campaigns in recent years that aim to make zero hour contracts more fair for employees, and on the 26^th May 2015, new legislation came into effect that many believe is a step in the right direction – a ban on using ‘exclusivity clauses’ within zero hour contracts.

What is an ‘Exclusivity Clause’?

An exclusivity clause is a rule written into a contract of employment that prevents the employee from taking additional work from another employer. This isn’t necessarily a bad thing – especially when the employee is guaranteed regular hours of work. But when it comes to zero hour contracts, it means employees can effectively be left with no stable income – the non-guarantee of any paid work from the zero hour contract combined with a restriction on seeking additional sources of employment are widely considered a bad combination.

As a result, an act has now been passed that means employers who write exclusivity clauses into their zero hour contracts could face legal ramifications. But is this enough to prevent unfair conditions for zero hour contract workers? Let us know your opinions in the comments below.

Small Business, Enterprise and Employment Act 2015

This new legislation came into effect as part of the Small Business, Enterprise and Employment Act 2015.

To find out more about the act, you can read the government’s official publication here.