Vince Cable has today announced proposals to bring into law a ban on exclusivity clauses within zero hours arrangements. The target being employers who engage a person on a zero hours contract with no guarantee of work, yet also require workers to be available by restricting individuals from taking up other roles whilst employed. The practice has been widely criticised as unfair and the government are taking steps to address it in the Small Business, Enterprise and Employment Bill being introduced to Parliament today.
Other aspects of zero hours contracts have been criticised and there have been calls for them to be banned. However in introducing this proposal, Vince Cable has recognised the value of zero hours arrangements and again having a flexible workforce, brings to the UK economy.
It has also been announced that there will be a further consultation on how to prevent employers evading the exclusivity ban. Whilst for some businesses the change in the law will necessarily result in a change in business models, contracts and operations; for the recruitment industry it may actually be of benefit and a step towards levelling the playing field between recruiters and other businesses. Under the Conduct of Employment Agencies and Employment Business Regulations 2003 recruiters are already restricted from subjecting a work seeker to detriment or threatening to do so on the grounds that the work seeker takes up employment elsewhere, as a result of which recruiters could not include an exclusivity clause in any event.
Theresa Mimnagh, employment expert at the recruitment law specialist Lawspeed, said “This is just one example of where agency workers have greater rights and protections than their directly employed counterparts. The AWR and a right to comparable pay and working conditions and the restriction on having payments withheld in certain circumstances being two other notable areas. With a consultation soon expected on changes to the Conduct of Employment Agencies and Employment Business Regulations 2003 it remains to be seen what other changes we can expect.”
Adrian, a highly experienced lawyer, founded Lawspeed in 1997. He is responsible for developing our extensive portfolio of products and services, including the widely used Lawspeed contract templates. Adrian is an expert on “recruitment law” and specialises in contracts, regulatory compliance, employment status and dispute handling. He is chair of the trade body the Association of Recruitment Consultancies, the only lawyer lead recruitment trade body in the UK. Adrian and his co-director Ravi devised Standards in Recruitment as a vehicle for helping drive up standards and compliance in the industry.
Adrian is our lead in discussions with the government over regulatory evolution. Apart from assisting with client support, Adrian’s primary role is research and development into methods of business delivery, our latest service Proterms being his most recent project. Adrian heads our IR35 lawyers team.