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Closing loopholes in zero hours exclusivity ban

August 25, 2014 12:01 AM
Originally published by UK Liberal Democrats

Liberal Democrat Business Secretary Vince Cable is calling on business, unions and individuals to help identify and close potential loopholes in plans to ban the use of exclusivity clauses in zero hours contracts.

Exclusivity clauses prevent workers on zero hours contracts from taking work elsewhere even when their employer provides no work.

The government is launching a consultation to find out whether a minority of unscrupulous employers may attempt to circumvent the ban by offering contracts which could guarantee just one hour of work.

The consultation is asking for people to submit their views on how to prevent this from happening. It also suggests options that workers could use to seek justice if they are treated unfairly by their employer because they found work elsewhere whilst on a zero hour contract.

The consultation follows the announcement in June 2014 that the government would ban the use of exclusivity clauses.

Liberal Democrat Business Secretary, Vince Cable said:

"We are tightening the screws on rogue employers who try to abuse workers on zero hours contracts. We are looking closely at any potential loopholes that could arise from a ban, to ensure that these are closed off and no one can get round the new law. We are also ensuring there is access to justice for workers treated unfairly.

"The evidence shows that the vast majority of zero hours contracts have been used responsibly by many businesses for many years, but unfortunately we know that some abuse does take place. This is why we are bringing in new laws to ban the use of exclusivity clauses in zero hours contracts, which currently stop employees getting other jobs if they need to top up their income.

follows the announcement in June 2014 that the Government would ban the use of exclusivity clauses. Exclusivity clauses prevent workers on zero hours contracts from taking work elsewhere even when their employer provides no work.

Business Secretary, Vince Cable said:

"We are tightening the screws on rogue employers who try to abuse workers on zero hours contracts. We are looking closely at any potential loopholes that could arise from a ban, to ensure that these are closed off and no one can get round the new law. We are also ensuring there is access to justice for workers treated unfairly.

"The evidence shows that the vast majority of zero hours contracts have been used responsibly by many businesses for many years, but unfortunately we know that some abuse does take place. This is why we are bringing in new laws to ban the use of exclusivity clauses in zero hours contracts, which currently stop employees getting other jobs if they need to top up their income.

"We want to give individuals the chance to find work that suits their individual circumstances whilst also giving employers the confidence to hire and create new jobs".