BEIS has commenced consultation in relation to the reform of non-compete clauses, often used in contracts of employment to prevent individuals starting their own or joining another’s business in competition with their former employer. It has been suggested that mandatory compensation should be payable by employers that wish to use non-compete clauses, similar to compensation required in France. The government will also consider whether it is appropriate to simply ban non-compete clauses altogether.
BEIS has also commenced a consultation into a proposal to extend the ban on exclusivity clauses to workers with a guaranteed weekly income of less than £120 per week, allowing such workers to find additional work where they are not getting enough hours from their employer. This would be similar to the ban on exclusivity clauses in relation to zero hours workers.Back to news list