Ministers consider curbing the use of non-compete clauses in UK contracts |
| The Department for Business and Trade has outlined proposals that could ban non-compete clauses outright, or introduce a minimum salary threshold or limits on the length of time for which they can apply. In a working paper, published alongside last week’s budget, the government said such clauses "play a part in restricting employee movement, limiting knowledge spillovers and can undermine incentives for innovation." Sinead Casey, partner and head of UK employment at Linklaters, observed: “If changes are to be implemented following the consultation, then a key challenge for the government will be how such change is enforced, bearing in mind the undoubted chilling effect on litigation of non-compete clauses posed by the potential legal cost and risk for individual employees.” |
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