We are seeking views on a specific proposal to extend the ban on exclusivity clauses beyond zero hours contracts, to contracts where the workers’ guaranteed weekly income is less than the Lower Earnings Limit, currently £120 a week. The intention is to allow low-income workers who are not able to secure the number of hours they would like from their current employer to seek additional work elsewhere.
Following the impacts of the COVID-19 pandemic, companies are not always in a position to offer enough hours for every worker. If more workers are able to take on additional work, on short hours contracts, this could also increase businesses’ confidence to create jobs with contracts which suit them and their current circumstances.
The responses to the consultation will help inform decisions on detailed policy questions such as the appropriate level to set the earnings threshold and the appropriate level of hourly wage cap for which an exemption to the ban may be warranted.
These reforms will affect businesses and organisations who use exclusivity clauses in their contracts of employment, and low-income workers who are subject to exclusivity clauses and are looking to take on additional work to boost their income.
See the BEIS consultation privacy notice.
Please do not send responses by post to the department at the moment as we may not be able to access them.