UK Government announces reform to non-compete clauses

Alongside announcements on reforms to EU derived employment law made on 10 May 2023 the UK Government has said that it intends to legislate, 'when Parliamentary time allows' to limit the length of non-compete clauses in the UK to three months.

The proposal was announced alongside a package of measures the UK Government has said are intended to boost innovation and growth. Whilst acknowledging that non-compete clauses can provide valuable protection for business the Government expresses the view that their use has become too widespread and is limiting competition and innovation. 

Estimating that up to five million UK workers may benefit from the proposal the Government has also made it clear that it will not seek to limit the use of paid notice periods, gardening leave or non-solicitation clauses or introduce measures that will cut across arrangements on confidentiality clauses.

We will keep you updated as more details emerge.