Consultation outcome

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

• From: Department for Business and Trade and Department for Business, Energy & Industrial Strategy
• Published: 4 December 2020
• Last updated: 12 May 2023 — See all updates

This was published under the 2019 to 2022 Johnson Conservative government

This consultation has concluded

Read the full outcome

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

PDF, 976 KB, 69 pages

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

PDF, 692 KB, 57 pages

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Detail of outcome

The government has responded to the consultation on measures to reform post-termination non-compete clauses in contracts of employment.

The government will introduce a statutory limit on the length of non-compete clauses of 3 months and will bring forward legislation to introduce the statutory limit when parliamentary time allows.

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Original consultation

Summary

We are seeking views on options to reform post-termination non-compete clauses in contracts of employment.

This consultation ran from
12:15am on 4 December 2020 to 11:45pm on 26 February 2021

Consultation description

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.

Documents

Consultation on measures to reform post-termination non-compete clauses in contracts of employment

PDF, 226 KB, 20 pages

Published 4 December 2020

Last updated 12 May 2023 + show all updates

1. 12 May 2023

   Published government response and impact assessment.

2. 4 December 2020

   First published.