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No more Exclusivity allowed in Zero Hour Contracts
The Government has now brought into force legislation which prohibits the use of exclusivity clauses in zero-hours contracts. Such clauses are deemed to be unfair as they prevent an individual who has no regular or guaranteed income (due to the nature of a zero-hours contract) accepting work from another employer.
Therefore, such exclusivity clauses should no longer be used. That said, you can still have an express term in a zero-hours contract which provides that any other work undertaken by the employee must not:
(1) be in direct or indirect competition with your business; or
(2) otherwise cause a conflict of interest.
Any existing exclusivity clauses are automatically rendered unenforceable by this ban and employers can no longer rely on them. We have provided this helpful link through to Gov.uk so you can read their Employer Guidance.
For onhand assistance with ensuring that your contracts and policies are legal and up to take, take a look at the MAD-HR Online HR Toolkit. It’s an online portal that includes templates, policies and documents for almost any HR-related situation. You simply access the Toolkit via a monthly subscription. To see how the HR Toolkit can fit in to your business, whether as your virtual HR manager or as a bolster to your current HR team, book a free demo. There is no obligation, it only takes 30 minutes and you speak to a person.
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This article is intended for general information purposes only and does not constitute legal or professional advice. It should not be relied upon as a substitute for advice tailored to your individual circumstances. Please be aware that the law may have changed since the article was published.
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