Zero hours exclusivity regulations published in draft

The Government has published the draft Exclusivity Terms in Zero Hours Contracts (Redress) Regulations 2015.

The regulations provide a remedy if an employee or worker is subjected to a detriment or dismissed by their employers due to failing to comply with an exclusivity clause. Regulation 1 stipulates that contracts that include exclusivity clauses will be unenforceable. There is no qualifying period or upper age limit. Where the tribunal finds that a claim is well founded they will make a declaration relating to the rights of the claimant and the employer about the claim and will award compensation. The impact of the regulations will be reviewed within a five year period.

In addition, the Department for Business, Innovation & Skills (BIS) has published a short guide on zero hours contracts for employers. It makes it clear that employees and workers (depending on the contract) are covered and what rights these would confer. It suggests that appropriate use of these contracts could include seasonal work, sickness absence cover and special events, and states that it is rarely appropriate to use the contracts for core business needs or where there is a broadly predicable timetable or output. Overtime, part time contracts, annualised hours and agency workers are put forward as alternatives to zero hours contracts. There is a useful section on best practice in the drafting of contracts covering statutory rights and entitlements.

Zero hours contracts are not defined in the draft regulations but in new s 27A in the Employment Rights Act 1996. When the regulations come into force they will apply to existing contracts as well as new contracts.