Hester Jewitt examines government plans to crack down on the abuse of zero hours contracts
Emotions around zero hours contracts have run high over the last year. For businesses, zero hours contracts are a valuable tool in the current market. While their flexibility also suits some individuals, it leaves others open to exploitation. To understand the issues associated with zero hours contracts, the business secretary, Vince Cable, launched a formal consultation on 19 December 2013. The consultation focused on:
- exclusivity clauses; and
- the lack of transparency on the terms, conditions and consequences of zero hours contracts.
The consultation closed on 13 March 2014 with more than 36,000 responses.
Government plans
On 25 June 2014, the government announced its response to the consultation process: to ban the use of exclusivity clauses in zero hours contracts; to take steps to address their lack of transparency; and to consult further on how to prevent rogue employers evading the exclusivity ban.
The changes will be introduced through the Small Business, Enterprise and Employment Bill 2014-15, which includes a new legal definition of a zero hours contract (being broadly
