Zero Hours Contracts: Government Outlines Proposals for Reform

The Government has announced that it plans to ban exclusivity clauses in zero hours contracts so that those employed on zero hours contracts are free to work for more than one employer. 

The Government estimates that 125,000 zero hours contract workers are currently prohibited by their contracts from working for more than one employer. The ban on exclusivity clauses is part of a bid to clamp down on the abuse of zero hours contracts. 

The Government also plans to:

• Consult further on how to prevent rogue employers evading the ban on exclusivity clauses, for example by offering one hour fixed contracts;
• Work with business representatives and trade unions to develop a code of practice on the fair use of zero hours contracts by the end of this year;
• Work with stakeholders to review existing guidance and improve the information available to employees and employers on using these contracts.

The proposals are set out in the Small Business, Enterprise and Employment Bill introduced into Parliament on 25 June 2014 and follow an earlier consultation.