Exclusivity clauses and workers on low earnings

Exclusivity clauses and workers on low earnings - Centric HR

It’s common these days to find exclusivity clauses in contracts of employment, which stipulates that employees shouldn’t work for other organisations whilst in your employment unless they seek your permission.  In 2019 they were banned from being included in zero hour or bank contracts as the practice was stopping the lowest earners from being able to have more than one income and affecting earning potential.

In December 2022 the law changed again to stop employers from having exclusivity clauses in contracts for any employee whose earnings fell below or is equivalent to the lower earnings limit (LEL). The lower earnings limit for this financial year is set at £123 per week, so it’s worth checking your contracts of employment or policies in relation to exclusivity clauses and ensure that if you have employees or workers that earn this or less that their contract permits them to have other work.

With the financial crisis upon us, it’s even more important to support low earners to make money where they can and not stop them from topping up pay to support their families.

The law will still apply even if your contract has an exclusivity clause, because an employer is unable to enforce this as it is against the law.

Source: ACAS

READ RELATED ARTICLE:  The benefits of pensions for both employers and employees

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest
Sandra Berns

Sandra Berns

Centric HR was founded by Sandra Berns, a confident and versatile Human Resources and Organisational Development Practitioner with 25 years demonstrable experience and a Fellow of the CIPD. Sandra has both Operational and Strategic HR expertise across Public and Private sectors and has assisted senior teams in meeting challenging workforce objectives in many corporate environments.