No more non-compete clauses?
- 17 December 2020
- Employment
This month, the BEIS (Department for Business, Energy and Industrial Strategy) opened their consultation on reforming employment contract non-compete clauses. Back in 2016, there was a close to universal consensus amongst employers that restrictive covenants are a valuable instrument for those seeking to protect their business interests. At the same time, their perceived impact on an ex-employee’s ability to find new work was deemed fairly insignificant, or, at the very least, not unfair.
However, due to the ongoing COVID-19 pandemic the Government is looking for ways to assist the unemployed, stimulate competition and create new jobs. Re-assessing the impact of post-termination restrictions will be part of their plan.
The key proposals the BEIS are seeking consultation on, are as follows:
Due to the ongoing COVID-19 pandemic the Government is looking for ways to assist the unemployed, stimulate competition and create new jobs.
The consultation closes on 26 February 2021, access the full paper
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