Proposal to ban employers preventing employees having a second job
You may recall in 2015, the Government banned the use of exclusivity clauses in zero-hour contracts. On the 9th May, the Government announced proposals to widen the ban to all workers.
What are exclusivity clauses?
Exclusivity clauses are restrictions within an employment contract that prevents an individual from working for another employer during an employment relationship.
What is being proposed?
The Government are proposing to ban the use of exclusivity clauses on individuals who have a guaranteed weekly income of £123 or less (i.e. the weekly lower earnings limit). This represents around 1.5 million workers in the UK.
Individuals who earn more than the weekly lower earnings limit could still be subject to an exclusivity clause.
It’s expected the legislation will be placed before Parliament later this year.
Why are they being proposed?
It’s hoped that the new reforms will improve access to job opportunities for those with low incomes by giving them the flexibility to have other jobs. However, the proposals may benefit employers too. One of the intended aims of the reforms is to help business fill vacancies – particularly, the retail and hospitality industries.
We’ll be keeping a close eye on the proposed reforms. If you have any questions on the use of exclusivity clauses, please feel free to contact a member of the team on 01274 864 999.
Author: Anna Schiavetta, Employment Law Solicitor at Howarths