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Outcome on anti-avoidance of exclusivity clauses in zero hours contracts

13 March 2015

As a result of concerns that employers could avoid a ban on exclusivity clauses in ZHC (e.g. by offering 1 hour contracts), the Government has announced plans to introduce draft regulations, ensuring that:

  • exclusivity terms are unenforceable unless there is a guaranteed minimum level of income for the worker. It is proposed that the minimum income will be calculated by reference to an agreed number of hours multiplied by the National Minimum Wage.
  • if the employer subjects the worker to detriment on grounds that they performed services for another employer, the worker will be entitled to seek compensation through an Employment Tribunal and the employer could be subject to financial penalties.

It appears that it is proposed that these measures will not apply where a worker receives at least £20 per hour.

It remains to be seen to what extent these proposals will remain in force following the general election but nevertheless an important development to note.

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