Changes to legislation regarding zero-hours contracts

One of the final pieces of legislation introduced by the last coalition government was a prohibition on exclusivity clauses in zero-hours contracts.

This has now become law (from 27 May 2015) within section 153 of the Small Business, Enterprise and Employment Act 2015.

Whilst the ban on exclusivity clauses will have an impact on many direct employers reliant on such contracts, the measure is unlikely to affect recruiters, who are already restricted from preventing work-seekers from taking up work with a hirer by virtue of Regulation 10 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003.

Other measures to follow in secondary legislation include penalties for failing to meet the National Minimum Wage.

Although the ban on exclusivity clauses was included within the Conservatives manifesto pledges, no further action on zero hours contracts is expected from their new majority government.