Views sought on reforming post-termination non-compete clauses amid coronavirus (COVID-19)

Views sought on reforming post-termination non-compete clauses amid coronavirus (COVID-19)

The Department for Business, Energy & Industrial Strategy has announced that it is seeking views on options to reform post-termination non-compete clauses in contracts of employment. The consultation is part of the government’s effort to support economic recovery following the impacts of the coronavirus (COVID-19) pandemic and to explore new ‘avenues to boost innovation, create the conditions for new jobs and increase competition’. The consultation closes at 11.45 pm on 26 February 2021.

The consultation is seeking views on the following:

  • proposals to make non-compete clauses enforceable only when the employer provides compensation during the term of the clause, and whether this could be complemented by additional transparency measures and statutory limits on the length of non-compete clauses
  • an alternative proposal to make post-termination, non-compete clauses in contracts of employment unenforceable

Responses can be sent online here.

The consultation document can be found here.

Source: Measures to reform post-termination non-compete clauses in contracts of employment

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