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New consultation: Government proposes changes to the law on non-compete clauses in contracts of employment

Employers will welcome the opportunity to comment on a consultation proposing to make it harder for employers to impose and enforce non-compete clauses on or against ex-employees after they leave their job.

January 2021

This update was published in Legal Alert - January 2021

Legal Alert is a monthly checklist from Atom Content Marketing highlighting new and pending laws, regulations, codes of practice and rulings that could have an impact on your business.

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

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Disclaimer: 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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