Search for:

In brief

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.


Key takeaways

  • 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.

Author

John Evason manages the employment team in London. He is a specialist employment lawyer advising on all aspects of employment law. He is ranked as a star individual in Chambers and a leading individual in Legal 500. He is a member and former chair of the Legislative and Policy Sub-Committee of the Employment Lawyers Association which provides comments to the UK government on new and amended legislation and regulations. He is a regular speaker at conferences and seminars, and frequently contributes to various legal and personnel publications.

Author

Carl is a partner in the Employment Group at Baker McKenzie. He focuses on advising organisations on the employment aspects of financial transactions together with more general employment and litigation advice. Carl has been recommended in the Chambers legal directory as being “hailed for his rigour and interpersonal approach to assignments”, an ability to “build a rapport very quickly with clients." Carl is also recommended by Legal 500 and has been quoted as being “excellent across the board” “very thorough,” “strong on transactional matters," “staying on top of the issues” and is further quoted as being “thorough, patient and goes the extra mile.”

Author

Rachel Farr is a Knowledge Lawyer in Baker McKenzie, London office.

Write A Comment