Exclusivity clauses: Banning exclusivity clauses in employment contracts for low paid workers

Exclusivity clauses: Banning exclusivity clauses in employment contracts for low paid workers's Tags

Tags related to this article

Exclusivity clauses: Banning exclusivity clauses in employment contracts for low paid workers

Published 10 June 2022

The Government has confirmed that it will bring in legislation banning employers from including exclusivity clauses in employment contracts for workers whose weekly income is on or below the Lower Earnings Limit.

THE FACTS

It is estimated that 1.5 million workers currently earn £123 a week or less.

The Government, in its response to its consultation on measures to extend the ban on exclusivity clauses in employment contracts to cover low-paid workers, has confirmed that legislation will be laid before Parliament later this year to extend the ban on exclusivity clauses in employment contracts.  This ban, which at the moment relates only to zero hours contracts, will cover those employees whose weekly income is on or below the Lower Earnings Limit (currently £123 a week).  

WHAT DOES THIS MEAN FOR EMPLOYERS?

Under the new legislation, employers will be prevented from contractually restricting low-earning employees from working for other employers.  This will mean that such employees cannot be restricted from topping up their earnings by working for other employers.

Press release: Lowest paid workers to be given flexibility to top up their pay under government reforms

Authors

Zoë Wigan

Zoë Wigan

London - Walbrook

+44 (0)20 7894 6564

Hilary Larter

Hilary Larter

Leeds

+44 (0)113 251 4710

Ceri Fuller

Ceri Fuller

London - Walbrook

+44 (0)20 7894 6583

< Back to articles