Government response to consultation on zero hours contracts

Zero hours employment contracts: government response to the ‘Banning exclusivity clauses: tackling avoidance’ consultation was published on 11 March 2015.

 

Details of outcome

The Small Business, Enterprise and Employment Bill will:

  • ban exclusivity terms in zero hours contracts
  • allow for regulations to be created to deal with employers who avoid the ban
  • provide routes of compensation for employees who have been offered a contract with an exclusivity clause

This government response sets out the outcome, next steps and draft regulations.

 

Background information

In August 2014, the Department for Business, Innovation & Skills (BIS) launched a consultation on Zero Hours Employment Contracts. Banning Exclusivity Clauses: Tackling Avoidance.

The Small Business, Enterprise and Employment Bill will ban the use of exclusivity clauses in contracts that do not guarantee any hours.

This consultation seeks views on the best way to prevent avoidance of the exclusivity clause ban, including actions that employees can take if they are offered such a contract.

It also includes the government’s response to the earlier Zero Hours Employment Contracts consultation, which closed in March 2014.

This consultation closed on 3 November 2014.