Lowest paid workers to be given flexibility to top up their pay under government reforms

Today, the Government has announced reforms to employment law, widening the ban on exclusivity clauses to putting more control into the hands of the lowest paid.

The proposals will widen the ban on exclusivity clauses, which restrict staff from working for multiple employers, to contracts where the guaranteed weekly income is on or below the Lower Earnings Limit of £123 a week. An estimated 1.5 million workers are earning on or below £123 a week and the new reforms will ensure that workers in this group that have exclusivity clauses are able to top up their income with extra work if they choose.

The reforms will give workers more flexibility over when and where they work to best suit their personal circumstances such as childcare or study, including the option of working multiple short-hours contracts.

As well as supporting workers to increase their income, the reforms will also benefit businesses by widening the talent pool of job applicants to those who may have been prevented from applying for roles due to an exclusivity clause with another employer, and also helps businesses to fill vacancies in key sectors like retail and hospitality. The reforms will allow low-paid workers to reskill and make the most of new opportunities in existing sectors with growing labour demand.

This follows Government action to support people with their cost of living and help the lowest paid workers keep more of what they earn, including increasing the National Living Wage to £9.50 per hour – equivalent to an extra £1,000 a year for a full-time worker – and cutting taxes for the workers on Universal Credit – putting an extra £1,000 back in their pockets.

In 2015, exclusivity clauses for workers on zero-hours contracts were banned to providing the flexibility to seek additional employment and now the Government are going further to help the lowest paid workers with rising living costs.

This puts more control into the hands of the lowest paid, giving them the freedom to decide who they work for, including the option to top up their pay packet.

For further information on this announcement, please visit:  https://www.gov.uk/government/news/lowest-paid-workers-to-be-given-flexibility-to-top-up-their-pay-under-government-reforms