Government Seeks Views on Reform of Non-Compete Clauses

The government is seeking responses to a working paper on options for reform of non-compete clauses in employment contracts.

According to previous analysis, around 5 million employees in Great Britain work under contracts that contains non-compete clauses, with a typical duration of around six months.

The government says that non-compete clauses play a part in restricting employee movement and limiting knowledge spillovers, and can undermine incentives for innovation. Evidence suggests that reform of non-compete clauses could help drive change by liberalising the UK labour market, supporting start-ups and growing businesses to access talent, improving competition, and giving workers greater freedom to switch jobs and start new businesses.

The working paper seeks input on alternative policy options including:

• introducing statutory limits on the length of non-compete clauses;
• banning non-compete clauses in employment contracts;
• banning non-compete clauses below a salary threshold; or
• combining a ban below a salary threshold with a statutory limit.

The working paper can be found on the government's website. The closing date for responses is 18 February 2026.