Lowest-paid workers given flexibility to top up their pay 

Britain’s lowest-paid workers will be given the flexibility to boost their income through extra work, under new plans set out by the government.

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 who 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-hour contracts.

Business Minister Paul Scully said the government was creating a high-skilled, high productivity labour market that supports workers by removing unnecessary red tape, helping the British people boost their incomes and keep more of what they earn.

“By extending the ban on exclusivity clauses, we are putting more control into the hands of the lowest paid, giving them the freedom to decide who they work for and how often, including the option to top up their pay packet if they wish,” he said.

As well as supporting workers to increase their income, the reforms would 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 help businesses fill vacancies in key sectors like retail and hospitality. 

It would allow low-paid workers to reskill and make the most of new opportunities in existing sectors with growing labour demand.

IPSE director of policy Andy Chamberlain said the extension of the ban on exclusivity clauses was welcome. 

“By cutting back on these restrictive clauses, the opportunity to find more flexible work will be open to more people,” Mr Chamberlain said.

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.

The reforms come at a time when there are more employees on payrolls than ever before.

By giving more workers the option to take on additional work on short-hour contracts, the reforms could also help increase businesses’ confidence to create jobs with contracts that suit them and their current circumstances.

Legislation for these reforms will be laid before Parliament later this year. The proposals follow the conclusion of a consultation launched by government in December 2020, which sought views on extending the ban on exclusivity clauses beyond zero-hour contracts.