Fact Service August 2014

Issue 34

Tell us about loopholes

Business secretary Vince Cable called on employers and trade unions to expose loopholes in zero-hours contracts that could be exploited by “rogue employers” in the wake of a looming crackdown on the controversial employment terms.

Cable is to ban exclusivity clauses in zero-hours contracts through the Small Business, Enterprise and Employment Bill. Such clauses bar employees from taking on additional work elsewhere, even if their current employer is offering no shifts.

Zero-hours contracts have been condemned by the unions as they can tie individuals to a workplace despite providing no guarantee of work and pay each week, while often denying employees sick pay or holiday pay.

In a bid to ensure that a crackdown on the exclusivity loophole is successful, Cable has asked businesses, unions and individuals to flag attempts to circumvent any restrictions.

“We are tightening the screws on rogue employers who try to abuse workers on zero-hours contracts,” he said. “We are looking closely at any potential loopholes that could arise from a ban, to ensure that these are closed off and no one can get round the new law. We are also ensuring there is access to justice for workers treated unfairly.”

www.gov.uk/government/consultations/zero-hours-employment-contracts-exclusivity-clause-ban-avoidance