The government wants your views on non-compete clauses

Consultation will look at whether employment rules "stifle" entrepreneurship by preventing workers from starting a business after leaving a job

The government has announced a consultation on whether non-compete clauses stifle entrepreneurship and innovation.

Setting out a call for evidence, the government intends to look at whether current employment rules prevent people from moving between employers and developing innovative ideas which could translate into creating a start-up or growing a business.

In the call for evidence, the government said it was “mindful that there are situations in which non-compete clauses are valid and serve a useful purpose” as non-compete clauses can restrict workers from immediately working for a direct competitor.

The government plans to use comments and opinions, particularly from start-up businesses, to weigh up the advantages and disadvantages of non-compete clauses and will assess transparency or misperceptions that may have arisen.

To share your views and answer questions for the consultation on non-compete clauses written into employment contracts, click here.

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