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No more exclusivity allowed in zero hour contracts

17th Aug 2016
Employment Law, Human Resources, Payroll, Recruitment

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 on hand 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.

Book a FREE DEMO

Simply choose a couple of dates and times that suit you. We'll confirm a session by email. When the time comes, grab a coffee and follow the link. One of our team will give you a guided tour on your screen, while talking you through the features and answering any questions you may have.

Book now

Brilliant service and advice from MAD-HR.   Thank you so much, you’ve made the process of taking on our first employee an absolute breeze! Highly recommended.