This article was published on January 13th, 2016
Does your business rely to some extent on casual labour? If so, you may well be using zero hours contracts. They can be really useful, flexible ways of covering things like staff illness, seasonal work, projects and ‘on-call’ duties.
But you won’t have failed to notice that zero hours contracts have been in for some criticism recently. A huge bone of contention has been around exclusivity clauses; terms within these agreements that stopped workers topping up their (fluctuating) earnings by working elsewhere. Now that these clauses have been banned, zero hours contracts have clawed back some popularity. But are you comfortable about when and how to use them?
This guide from the Department for Business, Innovation & Skills should help:
It has some really clear pointers about appropriate and inappropriate use. It’s also good on best practice and on alternative arrangements that you could put in place.
And, while we’re on the subject, the Government has published draft regulations (the ‘Exclusivity Terms in Zero Hours Contracts (Redress) Regulations 2015’) which could thwart employers who ignore the ban on exclusivity clauses. Yes, these clauses will be unenforceable and, yes, employees could choose to take no notice of them. But the regulations will offer certain specific protections for people working under zero hours contracts: