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UK - Government seeks help to expose businesses using loopholes to get around new zero-hours contract legislation

25 August 2014

According to The Guardian, the business secretary, Vince Cable, has urged employers and trade unions to expose loopholes in zero-hours contracts that could be exploited by "rogue employers" in the wake of a looming crackdown on the controversial employment terms.

As announced in our Daily News on 25 June, Cable is preparing to ban exclusivity clauses in zero-hours contracts that bar employees from taking on additional work elsewhere, even if their current employer is offering no shifts. The contracts have been criticised by unions because they can tie individuals to a workplace despite providing no guarantee of work and pay each week.

The Guardian reports that, in a bid to ensure that a crackdown on the exclusivity loophole is successful, Cable has asked businesses, trade unions and individuals to flag attempts to circumvent any restrictions. He said, "We are tightening the screws on rogue employers who try to abuse workers on zero-hours contracts. We are looking closely at any potential loopholes that could arise from a ban, to ensure that these are closed off and no one can get round the new law. We are also ensuring there is access to justice for workers treated unfairly."

About 1.4 million UK jobs are offered on zero-hours contracts, according to a report published by the Office for National Statistics in April

There is currently an open consultation on tackling avoidance on the ban of exclusivity clauses which closes on 3 November.