Exclusivity clauses banned in zero hours contracts

Following my previous blog about the truth behind zero hours contracts the government has now responded to the consultation and confirmed that the use of exclusivity clauses will be banned. See the full consultation here.

This means that an employer will not be able to have their cake and eat it i.e. they will not be able to engage a worker on a zero hours contract (avoiding full employment rights) and prevent a worker working elsewhere.

Government also intends to create a code of conduct for employers who want to use zero hours contracts.

The main benefit of using a zero hours contract for an employer is that the employee does not obtain full employment status and the rights associated with this (in particular unfair dismissal). A benefit for both employers and employees is the flexibility that zero hours contract provides.

There are lots of factors to consider when looking at what form the relationship between a company and individual doing work should take. If you have any questions about employment status, contracts or zero hours please do not hesitate to contact me at kate.brooks@ellisjones.co.uk.