Today Vince Cable, Business Secretary announced a ban to exclusivity clauses in zero hours contracts. This means that employers will be banned from preventing staff on zero hours contracts from seeking work with another employer.
Vince Cable said “unscrupulous” firms had abused the flexibility offered by the contracts”. (Source: BBC News)
It is estimated that in the UK there are some 1.4m people engaged on zero hours contracts and that this ban will benefit some 125,000 people who have this clause in their contracts.
Whilst there is no legal definition of a ‘zero hours contract’ the CIPD defines them as ‘an agreement between two parties that one may be asked to perform work for another but there is no minimum set contacted hours. The contract will provide what pay the individual will get if he or she does work and will deal with circumstances in which work may be offered and possibly turned down’.
Some employers say zero hours contracts offer greater flexibility – but is it possible that they are avoiding certain responsibilities to their employees? For example not always giving those under these contracts the same employment rights as other employees under permanent contracts of employment i.e. often sick pay is not included (NB. holiday pay is protected under the Working Time Regulations). The Institute of Directors said it liked the contracts because they helped ensure a “flexible work market,” but added that “flexibility must work for both staff and business,” and exclusivity clauses should be banned. (Source: BBC News)
One view is that this arrangement lacks commitment which could potentially erode the employment relationship between parties? There are cases where agreed work has been cancelled at the last minute without notice, giving the employee little recourse. Indeed other contracts have been known to include clauses where the contract can be terminated if the employee declines work on a number of pre-determined occasions.
Does having a zero hours contract negatively affect people’s ability to manage their finances or organise childcare? Some say that they find zero hours contracts beneficial in helping to juggle childcare and other personal responsibilities.
Unions and campaign groups are calling for an outright ban to the zero hours contract, others say there is a need for greater transparency and a regulated code of conduct.
We’d like to hear your views – zero contract or zero commitment? Have you ever been employed under a zero hours contract? What have been your experiences? Are zero hours contracts a good or a bad thing?
