Measures to reform post-termination non-compete clauses in contracts of employment

Non-compete clauses are used in contracts of employment to restrict an individual’s ability to work for a competing business, or to establish a competing business for a defined period after they leave.

To support economic recovery from the impacts of COVID-19, the government is exploring avenues to boost innovation, create the conditions for new jobs and increase competition.

The purpose of the consultation is to seek 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

• an alternative proposal to make post-termination, non-compete clauses in contracts of employment unenforceable

See the BEIS consultation privacy notice.

Please do not send responses by post to the department at the moment as we may not be able to access them.