Exclusivity Clauses in Zero Hours Contracts

In the UK, the issue of Zero-Hours Contracts - under which the worker does not have any guaranteed work- has been debated at great length in recent months.

Many employers like these Contracts, as they help with flexibility, particularly in the retail and call centre sectors.

But Zero-Hours Contracts are unpopular with employees, as they mean that employees do not know when they may be asked to work, and if they are going to receive any pay in any week or month.

One of the other main issues with Zero-Hours Contracts was that employers often inserted rules saying that the employee could not work for anyone else, even thought there was no guaranteed work for the employee under the Zero-Hours Contract. These rules are called "exclusivity clauses".

We now have a new law, under which "exclusivity clauses" in Zero-Hours Contracts are made illegal.

Also, the new law gives zero-hours employees the right not to be unfairly dismissed, and the right to not be subjected to a detriment (meaning: less favourable treatment), for breaching an exclusivity clause.

The new regulations have been criticised as they can be easily avoided by the employer drafting a Contract with low guaranteed hours - meaning that contracts will fall outside the definition and leave the individual in the same vulnerable position.

If you require advice on UK employment law, please contact Ashfords Employment Team.

For enquiries regarding UK immigration, please contact Ashfords Associate Kirsty Cooke.