What is the legal development?
On 11 January 2016 we saw the first enforcement provisions for the ban on exclusivity clauses in zero hours contracts come into effect. Under the new regulations there is now protection from dismissal or detriment for breaching a provision (or purported provision) of the worker’s contract which prevents them from working under another contract or arrangement for someone else.
(This follows recent Government guidance on general use of zero hours contracts, which is refreshingly short and practical.)
What does this mean in practice for employers?
Employers can no longer insist on zero hours workers making themselves exclusively available to their business. However, the teeth in the new regulations do not appear to be so strong and employers who need this wide type of flexibility may be able to tackle the problem in other ways.
The question may in practice be more one of fairness and ethics…
Our comment
Whether or not the use of zero hours contracts is ‘ethical’ has long been debated. The reality is that across the UK their use is steadily increasing year-on-year. In a world with increasing flexibility for employees seeking a better work-life balance, there is no surprise that employers have turned flexibility to their own benefit as well. Zero hours contracts may well have a legitimate place in every business, but in order to protect business reputation and also minimise legal risk, their use should be carefully considered and decisions made against true business need. Once in place, the practical arrangements should also be fairly managed as they may need justifying at any time.