On 7 November 2022, the Exclusivity Terms for Zero Hours Workers (Unenforceability and Redress Regulations 2022 were made. They come into force on 5 December 2022 and apply to England, Scotland and Wales.
Exclusivity clauses have been unenforceable in zero hours contracts since May 2015. The government has now extended this ban to employees and workers working under contracts which entitle them to net average weekly wages that do not exceed the lower earnings limit (currently £123 per week). In the same way as for zero hours contracts, exclusivity terms are defined as any contractual term which prohibits a worker from doing work or performing services under another contract or arrangement, or which prohibits a worker from doing so without their employer’s consent.
It is also automatically unfair to dismiss an employee if the reason or principal reason for the dismissal is that the employee breached an exclusivity term, and there is no qualifying period of employment to bring this claim. Workers are also protected from suffering any detriment if they breach an exclusivity term in their contract.
If you have any questions about whether this applies to your business or need any help with amending employment contracts for low-income employees, please do get in touch with our team.
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