Boost for low paid workers as government to crack down on “unfair” employment clauses

New government measures could see the ban of the use of exclusivity clauses in employment contracts.

Proposed measures to allow workers’ greater freedom to find new or additional work have been unveiled by Business Secretary Alok Sharma today.

The proposed crackdown on restrictive employment contracts aims to ensure that up to 1.8 million low paid workers across the country can take on additional employment if they want to.

In addition to banning exclusivity clauses, the government wants to introduce a mandatory compensation requirement for employers wishing to use non-compete clauses.

Business Secretary Alok Sharma explained: “We want to ensure every worker has the freedom and flexibility to work in the way they want, where they want – whether that’s topping up their pay packet by taking on additional work, or being able to start their own business with the skills they’ve gained throughout their career.

“Today’s reforms are another step on our path to making sure the UK is the best place in the world to work, start and grow a business as we build back better from the pandemic.”

Andy Chamberlain, director of policy at IPSE, added: “It is a welcome step in the right direction that the government is consulting on ways to crack down on restrictive contracts.

“Paring back restrictive contract features such as exclusivity and non-compete clauses should, we hope, help open up opportunities for the self-employed and support them in adapting to these challenging times.”