Non-compete clauses are widely used by employers to protect their legitimate business interests.
The Government have been concerned that non-compete clauses are a barrier to economic growth and undertook a consultation on the matter.
Last week, the Government announced that it will introduce legislation to limit the length of non-compete clauses to 3 months.
This will not interfere with the ability of employers to place employees on garden leave, or to include non-solicitation clauses in contracts.
A lengthy notice period together with a garden leave clause in the contract, is arguably the safest way to protect an employer’s business, rather than relying on a Judge having the same view as to whether the non-compete clause merely adequately protects the employer’s legitimate business interests.