Low paid workers will be given the flexibility to boost their income through extra work, under new plans set out by the government yesterday.

The proposals will widen the ban on exclusivity clauses, which restrict staff from working for multiple employers, to contracts where the guaranteed weekly income is on or below the Lower Earnings Limit of £123 a week.

An estimated 1.5 million workers are earning on or below £123 a week and the new reforms will ensure that workers in this group that have exclusivity clauses are able to top up their income with extra work if they choose.

The reforms will give workers more flexibility over when and where they work to best suit their personal circumstances such as childcare or study, including the option of working multiple short-hours contracts.

Business Minister Paul Scully said: “While not everyone will want a second job, the reforms will remove red tape that prevents those who want to do so – for example, gig economy workers, younger people, or those from disadvantaged backgrounds facing barriers to entering the labour market.

“By giving more workers the option to take on additional work on short hours contracts, the reforms could also help increase businesses’ confidence to create jobs with contracts which suit them and their current circumstances.”

UKHospitality CEO Kate Nicholls, said with more than 160,000 vacancies, the move was “positive for both businesses and workers in the sector”

“Pre-pandemic the industry generated £130bn in economic activity and contributed £39bn of tax to the Exchequer. To fully recover and, crucially, to play an optimal role in the national economic recovery, we need to attract and retain good people at all levels. Offering flexibility is a critical part of this.

“People are at the very heart of what we do and the sector offers a wide range of fulfilling roles and careers for people of all ages, levels of experience and expertise.”