More than one million part-time workers will be able to take up second jobs and work extra shifts under plans to widen a ban on so-called “exclusivity contracts”.
The reforms will target low-paid staff who are restricted from working for multiple employers by their current boss.
At the moment, only workers who are on zero hour contracts are covered by a 2015 ruling that prevents companies from banning them from taking on shifts elsewhere.
Ministers now want to extend this so that a further 1.5million low-paid workers are protected from “exclusivity contracts” as well.
Those that will be covered include workers with a guaranteed weekly income that is on or below the Lower Earnings Limit of £123 a week.
It means the lowest paid employees will be given the option to work extra shifts and earn more money during the cost of living crisis.
Ministers also hope the new rules will see staff fill vacancies in key sectors like retail and hospitality.
Legislation for these reforms will be put forward to Parliament later this year.
The proposals follow the conclusion of a consultation launched by the Government in December 2020, which sought views on extending the ban on exclusivity clauses beyond zero hours contracts.
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Business Minister Paul Scully said: “We are 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.”
Andy Chamberlain, director of policy at IPSE, said: “The extension of the ban on exclusivity clauses is welcome. By cutting back on these restrictive clauses, the opportunity to find more flexible work will be open to more people.”
However, trade union group TUC has said the plans only “tinker around the edges” of the cost of living crisis and called for more support for low-paid workers.
TUC general secretary Frances O’Grady said: "Ministers should ensure that workers can secure the hours of work they want and need.
"But this is tinkering around the edges.Widening the ban on exclusivity clauses alone isn't nearly enough to assist low-paid and insecure workers.
"The government must bring forward its long-awaited employment bill as quickly as possible.
"The bill must include giving workers a right to a contract reflecting their normal hours of work, and robust rules governing notice of shifts and compensation for cancelled shifts."
