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<p>This Government is clear that zero hours contracts should not be considered as
an alternative to proper business planning or used as a permanent arrangement if it
is not justifiable. They play a small but important part in the labour market, allowing
flexibility for both employers and individuals. People on zero-hour contracts make
up less than 3 per cent of the workforce and almost 70 per cent are happy with the
number of hours they work, according to the latest ONS Labour Force Survey research
(March 2015).</p><p>In May 2015 Government banned the use of exclusivity clauses in
zero hours contracts so that people cannot be prevented from looking for or working
elsewhere when their employer does not guarantee work.</p><p>Matthew Taylor in his
Review of Modern Working Practices has proposed some reforms around zero-hour contracts
and Government will consider the whole report carefully and make a full response later
this year.</p>
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