By Julie Dawson, Head of HR Consultancy, Alcumus
I am sure that everyone has read in the papers or heard on the news, and hopefully will have read our previous news bulletins about the huge debate around zero hours contracts.
The primary concern raised by the Government was the inclusion of ‘exclusivity’ clauses i.e. clauses within the contracts that prevented a worker/employee from working for any other employer (employer B) whilst engaged under a zero hours contract for Employer A.
I think most of us were in agreement that it just wasn’t fair or reasonable to try to impose such a restriction on someone who didn’t have guaranteed hours of work but now the Government has officially prohibited the use of such clauses. The new legislation, which came into effect on 26th May 2015, falls within the Small Business, Enterprise and Employment Act 2015 and is part of the first commencement order which confirms that under section 153 of the Act the use of exclusivity clauses in zero-hours contracts is now banned and illegal.
So if you, like many employers, still use and feel a huge benefit in having ‘zero hours’ contracts because of the type of business you operate, then please contact your HR Consultant or a member of our team for a better understanding of the implications of this legislation and to review your contracts to ensure they are complaint. We can still include confidentiality and loyalty clauses which don’t go quite as far as ‘exclusivity clauses’.