The UK Government has outlawed the use of exclusivity clauses in zero-hours Contracts. This took place on 26th May this year. This change was part of the first commencement order made under the Small Business, Enterprise and Employment Act 2015.
What does this mean?
Businesses of any size can no longer restrict their employees to their business exclusively if they are on a Zero Hours contract. Many people are now making the assumption that businesses will try to get around this amendment in the law by giving an employee a minimum amount of Contracted hours on a weekly / monthly basis such as 1 – 2 hours which will make it interesting to see how this is managed going forward.
Zero-Hour contracts benefit:
Individuals who do not want to be tied down to a set amount of hours per week / month B Business that do not want to have the commitment of a set salary expense of Contracted hours
Matthew from Consensus HR states: “I believe that zero-hours contracts have their place in some businesses. But – the business needs to ensure that this is the right option for the company and individual. By not offering the individual a guaranteed amount of Contracted hours, are they going to feel a real part of your company & its culture?”
If you currently have exclusivity clauses in your zero-hours contracts and wish to ensure they are to best practice and within the law contact Matthew, HR Professional at Consensus HR – ‘Helping Companies with their People & Business Solutions’