Zero hours, whistleblowing and severance

On 26 May 2015, the Small Business, Enterprise and Employment Act 2015 (the Act) came into force.  The Act brought in a number of changes, many of which are likely to affect employers in the healthcare sector. Three key reforms are:

1. A ban on exclusivity clauses in zero hours contracts

As anticipated, the use of exclusivity clauses in zero hours contracts is now prohibited. What this means is that any clauses which try to prevent workers on zero hours contracts from working elsewhere (or doing so without their employer’s consent) will be now unenforceable.

Employers who engage zero hours workers should now review their contracts and agreements with staff to ensure they comply with the new legislation.

2. Repayment of public sector severance payments

The Act allows the Treasury to make regulations to allow for the repayment by certain public sector workers of severance payments if they are re-employed in the public sector within a certain period.

Such payments will include redundancy payments, payments upon voluntary exit and payments in lieu of notice. Repayment may be required if the individual is re-employed in the public sector or engaged as contractor within a year of their initial departure.

These proposals demonstrate the intention of the Government to crack down on ‘poor value for money’ in the public sector regarding individuals working in the NHS who receive large severance payments and then shortly afterwards return to work in the public sector. Regulations are yet to be published but once in force, employers in the public sector will need to be mindful of and take steps to monitor the movement of individuals who receive severance payments.

3. NHS whistleblowing protection

The Act paves the way for regulations to prohibit NHS employers from discriminating against job applicants by rejecting their applications or treating them less favourably because it appears that they have blown the whistle.

The regulations are not in force and consultation is expected in light of the publication of the Francis Report earlier this year. This new form of discrimination will present a potential hazard for NHS employees when recruiting employees.

Jeremy Coy is a solicitor at Hempsons. He can be contacted on 020 7484 7540 or This email address is being protected from spambots. You need JavaScript enabled to view it..