New bill to ban exclusivity in zero hours contracts

The government has announced plans to introduce a ban on exclusivity clauses within zero-hours contracts.

The controversial arrangements have been criticised for exploiting workers by failing to guarantee them hours and in some cases, expecting them to only work for one employer even if there is no work available.

The ban, which will come into force through the Small Business, Enterprise and Employment Bill, will outlaw any requirement for an employee to work exclusively for that employer under a zero-hours contract.

It is thought the ban will benefit around 125,000 workers. Business secretary Vince Cable hinted it was in the pipeline at the end of last year, when he launched a Government consultation into the use of zero-hours contracts.

It has also been announced that there will be a further consultation on how to prevent employers evading the exclusivity ban.

According to legal specialists Lawspeed, under the Conduct of Employment Agencies and Employment Business Regulations 2003, recruiters are already restricted from subjecting a work seeker to detriment or threatening to do so on the grounds that the work seeker takes up employment elsewhere. This means that recruiters could not include an exclusivity clause in any event.

Theresa Mimnagh, employment expert at Lawspeed, said: “This is just one example of where agency workers have greater rights and protections than their directly employed counterparts.”

“With a consultation soon expected on changes to the Conduct of Employment Agencies and Employment Business Regulations 2003 it remains to be seen what other changes we can expect.”