On 9 May the Government announced plans to widen the current ban on exclusivity clauses.

Exclusivity clauses are used in contracts to prevent employees from working for other employers. A ban on the use of these clauses in zero-hours contracts was introduced in 2015.  This ban will now be extended to contracts where the guaranteed weekly income is at or below the Lower Earnings Limit of £123 a week.

This move follows an earlier consultation, which highlighted that the pandemic has led to reduced job security and a decrease in guaranteed working hours. The Government estimates that extending the ban will ensure about 1.5 million low-paid workers are not subject to exclusivity clauses, giving them more flexibility over where and when they work and further opportunities to increase their income.

Legislation for this reform will be laid before Parliament later this year, but it is not yet known when it will come into effect.