Member Article

Government crackdown on exclusivity clauses in zero-hour contracts ‘not enough’

Business Secretary Vince Cable announced measures to counter exploitation of employees on zero hours contracts, banning exclusivity clauses.

This comes two months after Ed Miliband pledged to do effectively the same thing.

Exclusivity clauses prevent an individual from working for another employer, even when no work is guaranteed, however not all parties agree that this measure goes far enough.

The use of exclusivity clauses in zero hours contracts undermine choice and flexibility for the individuals concerned.

The ban, set to benefit the 125,000 zero hours contract workers estimated to be tied to an exclusivity clause, is part of a bid to clamp down on abuses in the workplace by less scrupulous employers. It will allow workers to look for additional work to boost their income.

Business Secretary Vince Cable said: “Zero hours contracts have a place in today’s labour market. They offer valuable flexible working opportunities for students, older people and other people looking to top up their income and find work that suits their personal circumstances.

“But it has become clear that some unscrupulous employers abuse the flexibility that these contracts offer to the detriment of their workers. Today, we are legislating to clamp down on abuses to ensure people get a fair deal.

“Last December, I launched a consultation into this issue. Following overwhelming evidence we are now banning the use of exclusivity in zero hours contracts and committing to increase the availability of information for employees on these contracts. We will also work with unions and business to develop a best practice code of conduct aimed at employers who wish to use zero hours contracts as part of their workforce.”

This action follows a government consultation into zero hours contracts which received over 36,000 responses. 83% were in favour of banning exclusivity clauses in zero hours contacts.

The Business Secretary also announced that the Government will:

consult further on how to prevent rogue employers evading the exclusivity ban, for example through offering one hour fixed contracts. work with business representatives and unions to develop a code of practice on the fair use of zero hours contracts by the end of the year.

Simon Walker of the IoD and Tim Thomas, head of Employment Policy at EEF, the manufacturers union have come out in favour of the changes.

TUC general secretary Frances O’Grady however said: “The ban is welcome news but it’s not nearly enough to really tackle the problem. A lack of certainty is the real issue.

“Far too many employees have no idea from one week to the next just how many hours they’ll be working or more importantly how much money they’ll earn. This makes managing household budgets stressful and organising childcare very difficult indeed.

“The one change that would really make a difference would be for employers to have to guarantee their staff a minimum number of paid hours each week. And as the economy continues to grow that would give many zero-hours workers struggling to get by a much-needed pay rise.”

This was posted in Bdaily's Members' News section by Clare Burnett .