Exclusivity clauses banned

New legislation has recently been passed to stop you compelling any of your workers who are engaged on a zero-hours contract from working exclusively for you. The new law effectively makes any provisions in a zero-hours contract that seek to prohibit the individual from doing work or performing services under another contract or arrangement unenforceable.

What does this mean for you?

A. Review each of your current zero-hours contracts to see whether you have any such exclusivity provisions. If you do, this should be addressed, probably by entering into a new contract or varying the terms of the existing one.

B. You also need to watch out for further legal developments as there are suggestions that more changes may follow. This could include anything from giving additional rights to zero-hours workers to requiring employers to pay compensation to such individuals.

Goodman Derrick LLP has acted for clients in the hospitality and leisure industry for many years and the Employment Department recognises that this sector is heavily reliant on its staff. If you have any queries regarding the above or need assistance with any employment law issue, please contact Katee Dias, who is a member of our Employment Department and a specialist within our Hospitality and Leisure Sector Group, on 020 7404 0606 or at kdias@gdlaw.co.uk.

This guide is for general information and interest only and should not be relied upon as providing specific legal advice. Information correct as at 4 June 2015.