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BIS Conducts Consultation on Exclusivity Clauses in Zero Hours Contracts

The Department for Business Innovation and Skills have commenced a further consultation on zero hour contracts and are seeking views

After an initial consultation with the public and other organisations The Small Business, Enterprise and Employment Bill will ban the use of exclusivity clauses in contracts that do not guarantee any hours. The Department for Business Innovation and Skills have commenced a further consultation on the matter, which closes on the 3rd November, and are seeking views on the best way to prevent avoidance of the exclusivity clause ban, including actions against employers that offer such a contract.

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Some of the views that the consultation are seeking include:

  • What the likelihood of employers avoiding a ban on exclusivity clauses might be and how that might be achieved
  • Whether the Government should do more to deal with potential avoidance, how that might be best achieved, and whether to do this alongside the ban or wait for evidence of whether such avoidance is taking place
  • How potential avoidance could be dealt with
  • Whether there should be consequences for an employer if they circumvent a ban on exclusivity clauses and, if so, what those consequences should be;
  • Whether there are any potentially negative or unintended consequences as a result of the wording of the legislation.

After considering the responses, the Government will use the views submitted to help inform the implementation of the zero hours contracts provisions in the Small Business, Enterprise and Employment Bill.

The consultation details can be found at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/347034/bis-14-992-zero-hours-employment-contracts-exclusivity-clause-ban-avoidance.pdf

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