Business Secretary Vince Cable has announced that, under new proposals, employers could be banned from imposing ‘exclusivity’ on zero hours contracts which offer no guarantee of work and stop employees from working for another employer.

In the consultation, the Government also outline proposals on ways to tackle the lack of transparency in the way zero hours contracts are currently being used and improve guidance for both employers and employees around their use.

Business Secretary Vince Cable said:

‘A growing number of employers and individuals today are using zero hours contracts. While for many people they offer a welcome flexibility to accommodate childcare or top up monthly earnings, for others it is clear that there has been evidence of abuse around this type of employment which can offer limited employment rights and job security. We believe they have a place in today’s labour market and are not proposing to ban them outright, but we also want to make sure that people are getting a fair deal.’

The public consultation will seek views on a range of proposals will run until 13 March 2014.