NCB Preferred Partner Benefit


Zero-hour contracts and your business: What employers need to know


Some NCB members may use zero-hour contracts within their businesses or have done at some point. They are a useful source of ad-hoc help that can get members out of tight spot, when staff shortages rush orders or seasonal uplifts mean that there is a need to temporarily add to the workforce.


Zero-hour contracts can apply to ‘bank workers’, individuals who are familiar with the business and may be called upon from time to time to fill in, or employees who have no set hours. The latter will have the usual rights that workers also have, such as holidays, rest breaks and national minimum / living wage, but they will also accrue service during their contract, and so will enjoy service- related benefits such as redundancy pay after two years.


But are you aware of the law concerning exclusivity clauses for such workers? As this is planned to be expanded to part-time (limited guaranteed hours) workers in the future it seems an appropriate time to clarify the situation for NCB businesses.


Prohibition of exclusivity clauses


Exclusivity clauses cannot be used for zero hours ‘bank’ workers or employees. This has been law since 2015 and means that should such a clause be in a contract, it would not be


Expansion of the ban to part-time (limited guaranteed hours) workers


At present, this only applies to zero hours contracts. However, in May 2022, the


enforceable, and any employees dismissed for failing to comply with the clause, or worker who suffers a detriment as a result, would be able to bring a claim against their employer. This is a ‘day one’ right, so employees are not required to have two years’ service (it would be an automatically unfair dismissal).


Practically this means employers cannot ‘reserve’ zero hours staff, just in case they need them, by preventing them from working elsewhere. One of the biggest benefits of a zero-hour contract is that employers are not bound to give a minimum number of hours. As this may result in none, or few, hours being given each week, this prohibition puts a little more balance into the employment relationship.


government confirmed its intention (no timeframe however has been suggested) to extend this protection to include contracts which guarantee hours earning the individual less than the lower earnings limit, (currently £123). For example, an adult over 23 on the National Living Wage would fall within this if their contract guaranteed 12 hours or less work each week.


The effect of this ban is that those on part- time hours will be able to pursue other work elsewhere as well as the work under the contract. For members that have part-time employees on limited guaranteed hours, it is worth considering how much this would affect the business, should it happen, and if there is scope to guarantee more hours to these employees, so that they do not need to look elsewhere for hours.


Still got a question? For more information and support including tailored advice then please contact NCB on 01892 541412 or email info@nationalcraftbutchers.co.uk


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