Zero hours: exclusivity clauses to be banned
26 June 2014
It was announced by the Government this week that, as part of the Small Business, Enterprise and Employment Bill, it will ban the use of exclusivity clauses and increase the availability of information on zero-hours contracts for employees.
The Government received more than 36,000 responses to its consultation, with 83% in favour of banning exclusivity clauses. The Business Secretary, Vince Cable, has also announced that the Government will:
- Issue a further consultation on how to prevent ‘rogue employers’ evading the exclusivity ban by, for example, offering one-hour fixed contracts
- Work with business representatives and unions to develop a code of practice on the fair use of zero-hours contracts by the end of 2014
- Work with stakeholders to review existing guidance and improve information available to employees and employers on using these contracts
The proposals are likely fuel the whole debate on the use of zero hours contracts and the unions will demand much tighter restriction than is currently proposed.
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