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Government to Investigate Non-Compete Clauses

on Thursday, 05 May 2016.

The government has announced plans to investigate employment rules that could be 'stifling small businesses and entrepreneurship'.

In a bid to support small businesses and entrepreneurs, the government will shortly be launching a call for evidence including asking for views on ‘non-compete clauses’ and whether they act as a barrier to innovation and employment.

Non-compete clauses can be written into employment contracts and prevent individuals from setting up in competition with their former employer, approaching former clients or working for a competitor for a specific period of time after leaving an organisation.

The government is also undertaking an 'innovation survey', seeking views from firms on how the government 'can work with them to create new opportunities from big ideas to improve services, drive growth and create jobs'.

The survey and the call for evidence will form part of the National Innovation Plan, which will set out how to make Britain the best place in Europe to innovate and start a business.

The survey closes on 30 May 2016 and the National Innovation Plan is due to be published later this year.


For more information, please contact Helen Hughes in our Employment Law team on 020 7665 0816.