Measure
The government has issued a working paper seeking views on potential reforms to non-compete clauses in employment contracts. Proposed options include 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 and a combination of a ban below a salary threshold with a statutory limit.
These potential reforms will affect employees with non-compete clauses in their employment contracts. They will also impact employers, from the perspective of terminating employment relationships and when seeking to recruit new talent.
Consultation responses are invited until 18 February 2026. The government will review the feedback before deciding which, if any, of these proposals will be taken forward.
Many employers and employees will likely welcome measures that seek to aid talent mobility and reduce barriers for individuals to pursue new opportunities. However, it will be important for the government to also consider the impact on employers who may rely on non-compete clauses to protect business-sensitive information.