The new consultation 'Non-Compete Clauses: Consultation on measures to reform post-termination non-compete clauses in contracts of employment' asks for views on two main proposals.
The first is that non-compete clauses should only be enforceable against an ex-employee if the employee is paid compensation during the non-compete period – for example, by paying them a proportion of their normal remuneration in return for accepting the non-compete clause.
The second proposal is that non-compete clauses be banned completely – although this is highly unlikely to happen.
The deadline for comments is 26 February 2021.
Operative date
- Now
Recommendation
- Check out the new consultation on the GOV.UK website.
This article from Atom Content Marketing is for general guidance only, for businesses in the United Kingdom governed by the laws of England. Atom Content Marketing, expert contributors and ICAEW (as distributor) disclaim all liability for any errors or omissions.
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