Our Newport office will be closed on Friday 19th June for the Isle of Wight Festival. Our Ryde office will still be open as usual, with phone lines and live chat available if you need us.

We’ll be back in Newport as normal from Monday 22nd June, thank you for understanding!

Proud to be celebrating 170 years in business

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.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.