Ban on exclusivity clauses 'positive' for sector

By Rebecca Weller contact

- Last updated on GMT

Exclusivity ban: plans to include lower paid workers in exclusivity ban positive for the sector according to UKH (Credit: Getty/alvarez)
Exclusivity ban: plans to include lower paid workers in exclusivity ban positive for the sector according to UKH (Credit: Getty/alvarez)

Related tags: Recruitment, Training, Legislation, ukhospitality

The Governments plan to widen its ban on exclusivity clauses to some 1.5m people is “positive for both businesses and workers”, according to UKHospitality (UKH).

This comes as Business Minister Paul Scully announced yesterday (Monday 9 May) the ban on so called exclusivity contracts, which prevent employees (except those on zero hours contracts) from taking second jobs, would be extended to include those earning less than £123 a week.

UKH CEO Kate Nicholls said: “Currently the hospitality sector has more than 160,000 vacancies, double that of pre-pandemic levels, and recruitment is a key challenge for operators looking to rebuild and recover following the last two years.

Positive opportunities 

“We therefore see this move as positive for both businesses​ and workers in the sector.”

Plans to widen the exclusivity ban follow a Government consultation in December 2020, tasked with finding views on extending exclusivity clauses beyond zero hours contracts with legislation for the reforms expected to be put forward to Parliament later this year.

Furthermore, the plan means more than 1m workers will be given the opportunity to take extra shifts and second jobs amid the ongoing recruitment​ crisis faced by the hospitality sector as the cost​ of living continues to soar.  

Economic recovery 

This comes as last week saw the trade body call for Government to simplify and streamline​ post-16 qualifications to build a talent pipeline for the future.

Nicholls​ added: “Pre-pandemic the industry generated £130bn in economic activity and contributed £39bn of tax to the Exchequer. To fully recover and, crucially, to play an optimal role in the national economic recovery, we need to attract and retain good people at all levels. Offering flexibility is a critical part of this.

“People are at the very heart of what we do and the sector offers a wide range of fulfilling roles and careers for people of all ages, levels of experience and expertise.”

Related topics: Training

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