Moves to ban zero-hours contract exclusivity clauses

Following extensive consultation and debate on the use of zero-hours contracts, Vince Cable has announced that legislation to be introduced today will ban the use of exclusivity clauses.

Officially there are 1.4m zero-hour contracts in the UK, with it being reported that many employees appreciate the flexibility and the way rotas can be fitted around family commitments. However, it is reported that many companies keep employees dangling each month at their beck and call for zero cost.

With the banning of exclusivity clauses, what does this actually mean for employers moving forward?

  1. Employers can still offer zero-hour contracts to staff
  2. To ensure staff are still willing and able to work for the Company, employers can include clauses which limit the number of ‘refusals’ of work. This will assist employers to manage their ‘bank’ of zero-hour staff
  3. Employers will need to forward plan and communicate rotas well in advance to ensure that appropriately skilled staff are available and have not sought work elsewhere

If you need a review of your existing zero-hour contracts to ensure you comply with the new legislation please contact us on 0808 168 5780.