Restrictive covenants…are they restricting more than just former employees?

As part of its new Innovation Plan, the Government has asked businesses across the UK for their views on whether ‘non compete clauses’ in employment contracts are obstructing the UK’s innovativeness and employment opportunities. This call for evidence has been raised amid Government concerns that such restrictions are preventing fresh talent from reaching start-ups and small businesses who are, therefore, being adversely affected. The Business Secretary recently commented that these concerns are shared by Enterprise Nation, whose founder said that “entrepreneurial individuals need to be able to ease out of employment and into self-employment so a move to look into how employment contracts reflect this and the modern economy is warmly welcomed”.

The wider ambition of the plan is to make Britain the best place in Europe to innovate and start a business in line with the Government’s pledge in July last year. The findings from the call for evidence are expected to be utilised in conjunction with the Government’s new Innovation Plan to further drive innovation and opportunities in the UK.  The Innovation Plan focuses on promoting high tech businesses and manufacturing to revolutionise and modernise the way we live and work.