Draft regulations that extend the ban on exclusivity clauses in employment contracts from those on zero-hours contracts to include those earning on or less than GBP 123 per week have been laid before Parliament.
- The draft Exclusivity Terms for Zero Hours Workers (Unenforceability and Redress) Regulations 2022 will prohibit exclusivity clauses in the employment contracts of workers who earn less than the lower earnings limit for National Insurance purposes (currently GBP 123 per week).
- Once passed, they make any contractual term unenforceable that prohibits a worker from doing work or any other services under another contract or arrangement without the consent of the first employer. If an individual to whom the Regulations apply has such a clause in their contract, they will be protected from unfair dismissal with no qualifying period of service (employees) and detriment (workers). Unfair dismissal claims will be capped at the usual basic and compensatory award limits, and compensation in detriment cases will be subject to the same cap.
- The Regulations will come into force 28 days from when they are made, but the precise date is not yet known.
For advice or to discuss what this means for you and your business, please contact your usual Baker McKenzie contact.