Measures to extend the ban on exclusivity clauses in contracts of employment
Download the full outcome
Detail of outcome
Government will legislate on extending the ban on exclusivity clauses, making them unenforceable in employment contracts where the guaranteed weekly income is below or equivalent to the Lower Earnings Limit, currently £123 a week.
For this type of contract, the legislation will also extend the following rights for workers:
- not to be unfairly dismissed
- not to be subjected to a detriment for failing to comply with an exclusivity clause
- to claim compensation
Detail of feedback received
We received 30 responses to this consultation, the largest groups of respondents being:
- legal organisations and professionals (30%)
- trade unions (20%)
The consultation sought views on extending the ban on exclusivity clauses beyond zero hours contracts.
80% of respondents (24 responses) agreed with our proposal for the extension of the ban to low-income workers earning below or equivalent to the Lower Earnings Limit to help them secure additional employment and boost their income.
The majority of respondents also rated it very likely that greater numbers of workers would be seeking additional work to boost their income as a result of the COVID-19 pandemic.
Around 60% (18 respondents) believed extending the ban to workers whose contracts guarantee them weekly earnings below or equivalent to the Lower Earnings Limit would help ensure those seeking additional work are able to take it on.
Original consultation
Consultation description
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.
Documents
Last updated 9 May 2022 + show all updates
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Government response published.
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First published.