CMA response to working paper on options for reform of non-compete clauses in employment contracts
The Competition and Markets Authority (CMA) has responded to the Department for Business and Trade (DBT) working paper on options for reform of non-compete clauses in employment contracts.
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The CMA has responded to DBT’s working paper on options for reform of non-compete clauses in employment contracts.
Our response set outs the case for reform to the current legal framework, noting the importance of labour market mobility to economic growth. It draws on our report on competition and market power in UK labour markets, and other evidence on the relationship between non-competes and labour market mobility.
Additionally, it provides views on the options to restrict the use of non-competes and endorses a ban on non-competes below a salary threshold with a statutory limit on length above the salary threshold as a balanced approach.
For questions about the CMA’s response, email the CMA advocacy team at advocacy@cma.gov.uk