Britain’s lowest-paid workers will be able to take on second and even third jobs under new plans set out by the Government today. The proposals will widen the ban on exclusivity clauses, which restrict staff from working for multiple employers, to contracts where the guaranteed weekly income is on or below the Lower Earnings Limit of £123 a week.
An estimated 1.5million workers are earning on or below £123 a week and the new reforms will allow workers in this group to take on extra jobs.Business Minister Paul Scully said: “We are creating a high skilled, high productivity labour market that supports workers by removing unnecessary red tape, helping the British people boost their incomes and keep more of what they earn.
“By extending the ban on exclusivity clauses, we are putting more control into the hands of the lowest paid, giving them the freedom to decide who they work for and how often, including the option to top up their pay packet if they wish.”
In 2015, exclusivity clauses were banned for workers on zero-hours contracts, where employers are not obliged to provide any minimum working hours and the worker is not obliged to accept any work offered. Legislation for these reforms will be laid before Parliament later this year. The proposals follow the conclusion of a consultation launched by government in December 2020, which sought views on extending the ban on exclusivity clauses beyond zero hours contracts.
Some responses to the consultation highlighted the impact that COVID-19 has had on job security and its decrease in guaranteed working hours. Andy Chamberlain, Director of Policy at IPSE said: “The extension of the ban on exclusivity clauses is welcome. By cutting back on these restrictive clauses, the opportunity to find more flexible work will be open to more people.”
