Policy News Journal - 2014-15

than new contracts, as the number of people saying they are employed on “zero-hours contracts” depends on whether or not they recognise this term.

The number of contracts that do not guarantee a minimum number of hours, where work was carried out, was 1.8 million for the fortnight beginning 11 August 2014. The previously published estimate was 1.4 million for the fortnight beginning 20 January 2014 and as the two estimates of contracts cover different times of the year they cannot not be directly compared as the changes in the numbers may reflect seasonal factors. The ONS Analysis of Employee Contracts that do not Guarantee a Minimum Number of Hours report however that on average, someone on a “zero-hours contract” usually works 25 hours a week and that:

 Around a third of people on “zero-hours contracts” want more hours, with most wanting them in their current job, compared with 10% of other people in employment.

 People on “zero-hours contracts” are more likely to be women, in full-time education or working part-time. They are also more likely to be aged under 25 or 65 and over.

 Over half of employers in Accommodation and Food Services and a quarter of employers in Education made some use of no guaranteed hours contracts in August 2014. The Government, through the Small Business, Enterprise and Employment Bill is proposing to make exclusivity clauses legally unenforceable in employment contracts offering no guaranteed hours of work or income (zero hours contracts) and received its second reading in the House of Lords in December 2014.

Zero hours employment contracts: exclusivity clause ban avoidance

16 March 2015

The Small Business, Enterprise and Employment Bill is currently undergoing scrutiny by Parliament and includes the measure to ban exclusivity terms in zero hours contracts.

The Government has published their response to the ‘Banning exclusivity clauses: tackling avoidance’ consultation.

The consultation responses overwhelmingly supported tackling avoidance of the exclusivity ban via secondary legislation, and that this was necessary now rather than waiting to see what happened once the ban came into force.

The response details the next steps, which in summary are:

A new section will be inserted into the Employment Rights Act 1996 rendering exclusivity clauses in zero hours contracts unenforceable.

Draft Regulations to tackle avoidance of the exclusivity ban for zero hours contracts, will be considered during the passage of The Small Business, Enterprise and Employment Bill to assist in Parliamentary scrutiny. The draft Regulations will include the right for zero hours workers to not suffer detriment on the grounds that the worker has done work or performed services under another contract or arrangement. They can complain to an Employment Tribunal if they consider they have suffered such a detriment.

CIPP Policy News Journal

08/04/2015, Page 102 of 521

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