Chester 01244 405 555

Grosvenor Court
Foregate Street Chester
Cheshire CH1 1HG
DX: 19990 Chester


Shrewsbury 01743 443043

Lakeside House
Oxon Business Park
Shrewsbury SY3 5HJ
DX: 148563 Shrewsbury 14

Slide e

Airport City, Manchester 0161 537 3324

Offices 204 and 205
Manchester Business Park
3000 Aviator Way
Manchester M22 5TG

Ban on Exclusivity Clauses in Employment Contracts to be Extended

27th May, 2022

On 9 May 2022, the government published its response to its consultation on measures to extend the ban on exclusivity clauses in employment contracts to cover low-paid workers whose earnings are on or under the lower earnings limit (currently £123 per week).

Exclusivity clauses restrict workers from taking on additional work with other employers. In 2015, the use of exclusivity in employment contracts was banned in zero-hours contracts with the same aim of maximising opportunities for individuals to find additional work and apply their skills to drive economic recovery.

The government stated in its press release that legislation proposing to widen the ban to low earners will be laid before Parliament later this year which would extend the ban on exclusivity clauses to contracts where the worker’s guaranteed weekly income is below or equivalent to the lower earnings limit. It is estimated that 1.5 million workers currently earn £123 a week or less, which equates to almost 13 hours a week for someone on the National Living Wage. The reforms will mean that the lowest paid workers will be given the choice to work in multiple jobs if they wish, to top up their income with extra work for other employers and to give them more flexibility over when and where they work.

Employers should be aware of the proposed changes and how this will impact them and put measures in place to ensure they are prepared. This might include:

• Reviewing existing contracts, as exclusivity clauses will need to be amended to ensure they only apply to those earning above the lower earnings limit – however employers can still require employees to tell them if they are working elsewhere;
• Updating policies and procedures where necessary;
• Working out the average weekly earnings of all employees, so employers are aware of who the new rules apply to;
• Assessing the roles and industry their employees work in as it may be appropriate to consider introducing restrictive covenants or confidentiality clauses for employees who may want to work for a competitor or where there are concerns about the sharing of confidential information or trade secrets.

You might also be interested in...

Handholdingkeystohouse CovidandRentArrears–WhatdoesitmeanforCommercialLandlordsandTenants

Letting Residential Property in Wales

15th June, 2022

A Guide to the New Legislation for Landlords The law as it relates to rental properties in Wales... Read More »

Government temporarily changes the rules around Fit Notes Aaron and Partners scaled e

Sick notes: a change in the law?

10th June, 2022

In order to ease the pressure GPs are currently facing, pharmacists, nurses and other healthcare professionals will soon... Read More »

International Assembly Arrives in Chester

10th June, 2022

More than 80 delegates and guests from around the world flocked to Chester as part of an event... Read More »

Contact Us