Consultation on non-compete clauses

Due to the economic impact of Covid-19, the Government is exploring ways to boost innovation and make it easier for new jobs to be created, and entrepreneurship to thrive.

A consultation on non-compete clauses, which closed on 26 February 2021, sought views on:

• proposals to make non-compete clauses enforceable only when the employer provides compensation during the term of the clause, and whether this could be complemented by additional transparency measures and statutory limits on the length of non-compete clauses, and
• an alternative proposal to make post-termination, non-compete clauses in contracts of employment unenforceable.

The consultation also sought views on whether other post-termination restrictions, e.g. non-solicitation, non-poaching, etc., should be included in any proposed reform.