Consultation outcome

Non-compete clauses: call for evidence

This consultation has concluded

Detail of outcome

The common view across the majority of responses was that restrictive covenants are a valuable and necessary tool for employers to use to protect their business interests and do not unfairly impact on an individual’s ability to find other work. Common law has developed in this area for over a century and is generally acknowledged to work well.

Having built up a picture of the UK experience via this call for evidence, we have decided it is not necessary to take any further action at this stage.

Detail of feedback received

We received 83 responses to the call for evidence from a range of stakeholders including:

  • legal representatives
  • micro businesses right through to large business
  • business representatives
  • organisations
  • individuals including start-ups.

Original consultation

Summary

We're seeking your views on whether non-compete clauses prevent people from starting up their own business after leaving a job.

This consultation ran from
to

Consultation description

This call for evidence is seeking your views on whether non-compete clauses stifle entrepreneurship and innovation by preventing people from:

  • moving between employers
  • developing innovative ideas
  • creating a start-up
  • growing a business

We would like to hear your views, experience, and evidence of non-compete clauses so that we can understand:

  • when and why they are used
  • their prevalence
  • the benefits or disadvantages associated with them

Documents

Non compete clause: call for evidence

Published 25 May 2016