Proceed with Caution when Using a Zero-Hour Contract

In the United Kingdom, ‘zero-hour’ contracts seem to be popular among the youth due to the lack of job availability for the youth. In such zero-hour contracts, an employer does not have to guarantee work hours or duties to their employees. However, in some cases, employers still include an exclusivity clause in the zero-hour contracts which deny workers the right to work for any other employers. Due to the controversial nature of such contracts, it has been rumored that the United Kingdom government may outlaw zero-hour contracts with exclusivity clauses.

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Take away:

  • Before asking your employees to sign zero-hour contracts, ensure you have reviewed the enforceability of the employment agreement’s restrictive covenants.

Written by Rajah. Rajah Lehal is Founder and CEO of Clausehound.com. Rajah is a legal technologist and technology lawyer who is, together with the Clausehound team, capturing and sharing lawyer expertise, building deal negotiation libraries, teaching negotiation in classrooms, and automating negotiation with software.