An exclusivity clause in an employment contract restricts workers from taking on additional work with another employer. As with other restrictive covenants, they are only enforceable if they are designed to protect a legitimate business interest and are reasonable.
The government has now banned these exclusivity causes when an employee is on a zero-hour contract or low income, meaning that they can now work another job alongside.
This change is designed to offer lower paid workers the opportunity to increase their income and to widen the pool of talent for employers to choose from.
The Exclusivity Terms for Zero Hours Workers (Unenforceability and Redress) Regulations 2022 were made on 7 November 2022 and came into force from 5 December 2022.