From 26th May 2015, the government outlawed the use of exclusivity clauses (that prevented an employee going and working elsewhere even though they have no guaranteed hours) in zero-hours contracts. This and other employment law-related measures are contained in the first commencement order made under the Small Business, Enterprise and Employment Act 2015.
The most notable provisions of the Act, as they affect employment law, are:
- s153 – this bans the use of exclusivity clauses in zero-hours contracts. Further regulations are awaited dealing with the anti-avoidance aspects.
- s152 – this increases the penalty which can be imposed on an employer that underpays its workers in breach of the National Minimum Wage law. The maximum penalty of £20,000 can now be calculated on a per worker basis rather than on a per employer notice basis.
- s33 (certain parts) and 34 – these enable the Secretary of State to make regulations about the meaning of a ‘small business’ (currently a headcount of fewer than 50 and a specified threshold for turnover and balance sheet) and a ‘micro business’ (currently a headcount of fewer than 10 and a specified threshold for turnover and balance sheet).
Note: we help a range of business sizes – as long they employ people, the problems they face can be just the same no matter what size they are!
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