Prohibition on Exclusivity Clauses Finally Becomes Law
We reported in July 2014 on the Small Business, Enterprise and Employment Bill which, amongst other things, would make unenforceable any clause in a zero hours contract which prohibits the employee from doing work for anyone else, or where they have to obtain permission from their employer to do so. This finally become law on 26th May.
Anti-avoidance measures are still to be introduced to try to stop employers getting around this ban. These measures will be coming out in the near future, but further details of them are to follow. So far it appears that the ban on exclusivity clauses will apply also to contracts which guarantee only a limited weekly income - the threshold level of income has not yet been set, however. Also workers on zero hours contracts (or those earning below the weekly income threshold) will be protected from suffering a detriment on the grounds that they sought additional work elsewhere. If they do suffer a detriment, they will be able to bring complaints to an employment tribunal.
We will let you know when these measures become law.