Clarkslegal LLP - Solicitors in Reading and London

Legal Updates

Zero-hours exclusivity clause ban and £20,000 national minimum wage fines in force

29 May 2015 #Employment


Provisions in the Small Business, Enterprise and Employment Act 2015 (passed by the Coalition Government) that make exclusivity clauses in zero-hours contracts unenforceable came into force this week. Also now  in force is the increase in the maximum financial penalty for underpayment of the national minimum wage to £20,000 per worker.

A new S.27A ERA provides that any provision of a zero-hours contract which prohibits the worker from doing work or performing services under another contract or under any other arrangement, or prohibits him or her from doing so without the employer’s consent, is unenforceable against the worker.

A new S.27B ERA creates a power for the government to make further provision to prevent zero-hours workers being restricted in their ability to work for other employers. When the Coalition Government published its response to the consultation on the exclusivity ban in March 2015 it promised that it would introduce secondary legislation to create a new protection from detriment for zero-hours contract workers who take jobs under other contracts, and establish a minimum income level below which exclusivity clauses will be unenforceable. However, no such legislation has yet been brought into force.

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at employmentunit@clarkslegal.com by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.

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