Ban on Exclusivity Clauses

The Government has recently decided in its reforms to widen the ban on exclusivity clauses by removing the red tape and giving lowest paid workers the choice to work multiple jobs if they wish. This will allow them to boost their income through extra work if their guaranteed weekly income if in or below the Lower Earnings Limit of £123 a week.

Previously, staff could be restricted from working for multiple employers under exclusivity clauses. An estimated 1.5 million workers are earning less than the Lower Earnings Limit and the latest reforms will ensure that workers in this group are able to top up their income with extra work if they wish to do so.

The reforms will also benefit businesses by widening the talent pool of job applicants to those who may have previously been restricted from applying for roles due to an exclusivity clause with another employer. These reforms will also benefit businesses in key sectors like retail and hospitality as they will be able to fill more vacancies. Low-paid workers will also be in a position to reskill and make the most of new opportunities.

Legislation for these reforms are due to be laid before Parliament later this year. These proposals are a result of a consultation launched by the Government in 2020 in which it was highlighted the impact that COVID-19 had on job security and its decrease in guaranteed working hours. This will allow those with currently reduced hour contracts due to the pandemic to increase their income.

When the new rules come into place, it will be crucial for employers to review their zero hours contracts and make the relevant changes.

 

If you want to discuss any of the issues raised in this Blog, Vajiha Ali from our employment team would be happy to help and you can contact her on vah@bbmsolicitors.co.uk or speak to her on 01955 604188.