KNOWLEDGE CENTRE

Government publishes proposal to ban exclusivity clauses for low paid workers

Government publishes proposal to ban exclusivity clauses for low paid workers

July 25, 2022

On 9th May 2022 the Government published its proposals to extend the ban on exclusivity clauses to those who are low paid.

The Government has announced that later this year it plans to bring in legislation that will ban the use of these clauses in employment contracts of anyone who is on or under the lower earnings limit, which is currently £123 per week.

The aim is that these clauses being banned will enable these workers to take second jobs to support themselves.

Where exclusivity clauses can’t be used (we call them other employment) we will need to look to see whether it’s appropriate to add any restrictive covenants or confidentiality clauses to protect the business.

If you have part time employees who earn on or under the lower earnings limit, we advise you now consider whether you will need to update your contracts of employment. Someone on the NLW (£9.50) this equates to a contract of 13 hours or less. These could be your cleaners, lunchtime cover, wraparound care workers in your Day Nursery, Pre-school or Out of School Club.

If we can be of any assistance with your contracts for your Day Nursery, Pre-school or Club, please contact us on 01527 909436.

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