Exclusivity clauses in zero hour contracts are banned from today, as the Small Business Act 2015 comes into force.
Zero hour contracts mean companies can hire employees with no guarantee of work. Employers can provide workers with hours, often at short notice.
This is used by some industries who need a flexible workforce, such as the voluntary sector and more frequently by larger employers (around 250 employees).
The Federation of Small Businesses (FSB) found a lower number of small businesses use these contracts.
Under the new act exclusivity clauses which previously prevented zero hour contract workers from working for another employer are now banned.
The FSB said it did not support these clauses and has previously suggested a code of practice for the use of zero hour contracts to prevent exploitative behaviour.
‘Small businesses are by their nature flexible, and the kind of contracts staff are employed on depends on the nature of the business.
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