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Zero hours contracts: exclusivity clauses are banned

Posted on January 08, 2016

8 January 2016Zero Hours Contracts

Zero hours contracts (where there is no certainty that work will be made available to the worker) attracted a lot of criticism in 2015 and steps are now beginning to be taken to restrict them.

 

From the 11th January 2016, two new sections 27A and 27B are inserted into the Employment Rights Act 1996:

  • The new s27A makes exclusivity clauses in zero hours contracts unenforceable. It will be unenforceable for an employer to seek to prohibit a zero hours worker from:
  • Doing work under another contract or under any other arrangement, or
  • Doing work under another contract without the employer’s consent;

 

  • Section 27B gives the government wide-ranging powers to make further provisions in relation to zero hours contracts in the future, which may include;
  • Imposing financial penalties on employers.
  • Requiring employers to pay compensation to zero hours workers.
  • Conferring jurisdiction on employment tribunals.
  • Conferring rights on zero hours workers.

 

To speak to an employment law solicitor about zero hours contracts, unfair dismissal, or anything else, call 0207 118 0950 today.

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