0370 270 6000

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.

Related opinions

IR35 rules to be scrapped from April 2023

The Chancellor’s recent mini-budget provided a significant announcement for business as it was confirmed that the off-payroll working rules (known as “IR35”) put in place for public and private sector businesses from 2017 and 2021 will be scrapped from April 2023.

View blog

Revoking and reforming EU law

The Government has published the Retained EU Revocation and Reform Bill which, if passed, provides for the revocation of all “EU-derived subordinate legislation” (i.e. UK statutory instruments which were introduced to implement EU law) and retained direct EU legislation on 31 December 2023, unless legislation is specifically introduced to save them.

View blog

Gender equality

Randstad has published a report on gender equality in the workplace based upon survey responses from 6,000 workers within the construction, education, healthcare and technology sectors. Whilst legislation relating to sex discrimination has been around for over 45 years, nearly three quarters of female workers surveyed reported that they had either experienced or witnessed inappropriate behaviour or comments from male colleagues.

View blog

Unfavourable treatment

The Employment Appeal Tribunal’s recent decision in the case of Mr Michael Cowie & Others v Scottish Fire and Rescue Service provides a useful insight into favourable - or unfavourable - treatment in the context of discrimination claims.

View blog

Mailing list sign up

Select which mailings you would like to receive from us.

Sign up