Explanatory note

These Regulations make provisions for the purpose of securing that workers, other than those working under a zero hours contract, working under a contract which entitles them to net average weekly wages of not more than the lower earnings limit (a specified contract), are not restricted from doing any work otherwise than under that contract.

An exclusivity term is defined at regulation 2 in similar terms to section 27A(3) of the Employment Rights Act 1996.

Regulation 3 makes provisions to render unenforceable any exclusivity terms set out in a specified contract.

Regulation 4 relates to the calculation of average weekly wages in relation to contracts of employment or other worker’s contracts which are permanent.

Regulation 5 relates to the calculation of average weekly wages in relation to contracts of employment or other worker’s contracts in relation to all other contracts of employment or other worker’s contract, where the provisions of regulation 4 do not apply.

Regulation 6 relates to the calculation of net average weekly wages.

Regulation 7 makes provision making it automatically unfair for employees to be dismissed for a reason relating to a breach of an exclusivity term of their specified contract and creating a right for workers not to be subjected to a detriment for a reason relating to a breach of an exclusivity term of their specified contract.

Regulations 8 and 9 provide remedies, including compensation, for individuals, by way of proceedings in employment tribunals.

Regulation 10 requires the Secretary of State to review the operation and effect of these Regulations and publish a report within five years after they come into force and within every five years after that. Following a review, it will fall to the Secretary of State to consider whether the Regulations should remain as they are, or be revoked or be amended. A further instrument would be needed to revoke these Regulations or to amend them.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.