The UK Government plans to change the rules around non-compete clauses in employment contracts.
In its policy paper, ‘Smarter regulation to grow the economy’, it has announced its intention to cap the length of non-compete clauses 3 months.
Currently, non-compete clauses can apply for 12 months or more and there is currently no legislation in the UK that limits their use.
However, the Government believes non-complete clauses may be inhibiting workers from moving to another employer for fear of being pursued for breach of contract. Therefore, they intend to legislate to limit the duration of non-compete.
No date has yet been set for when the new legislation will be enacted.