IoD welcomes crack down on exclusivity clauses in zero hour contracts

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25 June 2014

The Institute of Directors has staunchly defended the role of zero hour contracts in a flexible labour market, but has equally been adamant that the flexibility must work for both staff and business, and has backed heavy restriction of clauses which prevent employees from working for more than one company.

Responding to Vince Cable’s announcement today that exclusivity clauses will be banned, Simon Walker, Director General of the Institute of Directors, said:

“The IoD has long campaigned against the exploitation of employees on Zero Hours Contracts. Tying an employee into an exclusivity cause can turn a flexible contract into a rigid and archaic one. The whole point about the flexibility offered by Zero Hours Contracts is that they allow an individual to capitalise on their own time, labour and energy.

“We’re pleased that the government recognises the enormous value that flexible contracts can bring to both employer and employee,  but at the same time it’s right to ensure that exploitation is stamped out. The debate around Zero Hours Contracts has, at times, been hysterical. In this context, the government should be congratulated for protecting the valuable elements of such arrangements whilst closing down the loopholes that have generated understandable controversy.”


Contacts for further comments or to arrange interviews:

Christian May
Head of Media Relations

Institute of Directors, 116 Pall Mall, London SW1Y 5ED

020 7451 3263

07908 358 728

Edwin Morgan
Deputy Head of Media Relations

Institute of Directors, 116 Pall Mall, London SW1Y 5ED

020 7451 3392

07814 386 243

Notes to editors

  • The Institute of Directors (IoD) was founded in 1903 and obtained a Royal Charter in 1906. The IoD is a non-party political organisation with approximately 34,500 members in the United Kingdom and overseas. Membership includes directors from right across the business spectrum – from media to manufacturing, e-business to the public and voluntary sectors. Members include CEOs of large corporations as well as entrepreneurial directors of start-up companies.
  • The IoD provides an effective voice to represent the interests of its members to key opinion-formers at the highest levels. These include Government ministers and their shadows, parliamentary committee members, senior civil servants and think-tanks. IoD policies and views are actively promoted to the national, regional and trade media. Follow us on  to get the IoD’s reaction on business and public policy issues.
  • The IoD offers a wide range of business services which include business centre facilities, with 15 UK centres (including three in London, Reading, Birmingham, Cardiff, Manchester, Nottingham, Norwich, Edinburgh, Glasgow and Belfast) and one in Paris, conferences, networking events, virtual offices, issues-led guides and literature, as well as free access to business information and advisory services. The IoD places great emphasis on director development and has established a certified qualification for directors – Chartered Director – as well as running specific board and director-level training and individual career mentoring programmes.
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