Ban on exclusivity clauses for low-paid workers comes into force on 5 December 2022

On 5 December 2022, a ban on exclusivity clauses for low-paid workers under The Exclusivity Terms for Zero Hours Workers (Unenforceability and Redress) Regulations 2022 comes into play. This is an extension of the ban on exclusivity clauses for zero-hours contracts which was implemented in 2015.

So what is an exclusivity clause? 

It’s a clause in a contract that restricts workers from working with multiple employers.

Why has the ban been extended?

Because the previous ban only covered zero-hour workers with no guaranteed hours, meaning low-paid workers with guaranteed minimum hours could be restricted. This meant low-paid workers (i.e. those whose net average weekly wages fall below or equivalent to the lower earnings limit, which is currently £123 a week) with only 10 hours on national minimum wage could see themselves stopped from working for someone else.

What impact does this have on my business?

The new regulations extend the ban on exclusivity clauses to low-paid workers, making them void and unenforceable. So employers will need to review their contracts of employment for any previously implemented exclusivity clauses on low-paid and minimum-hour workers with consideration to the threshold!

Employers will also need to consider any action they may take toward a low-paid worker in relation to an exclusivity clause. This is because the new regulations make it automatically unfair for employees to be dismissed for a reason relating to a breach of an exclusivity term and create a right for workers not to be subjected to a detriment for a reason relating to a breach of an exclusivity term. Those employees affected will not need two years’ service in order to bring an unfair dismissal claim.

If you have any questions, please contact ViewHR today.