This working paper seeks views on different options to reform non-compete clauses in employment contracts.
Non-compete clauses are inserted into employment contracts to restrict an individual’s ability to work for, or establish, a competing business after they have moved on from a job.
The government is interested in views on different options to reform non-compete clauses in employment contracts to support the growth mission.
This working paper is intended to support discussions, to determine whether and how to take proposals forward, as opposed to a formal consultation.
Discussion questions
The government would welcome your views, and any evidence to support those views, on the following:
1․ Introducing restrictions on non-compete clause
2․ A statutory limit on the length of non-compete clauses
3․ A statutory limit that differed according to company size
4․ The length and company size thresholds should be set at, for example:
a) A statutory limit of 3 months for companies with more than 250 employees and a limit of 6 months for companies with 250 or fewer employees
b) A statutory limit of 3 months for companies with more than 50 employees and a limit of 6 months for companies with 50 or fewer employees
c) Other – please explain
5․ A ban on non-compete clauses in contracts of employment
6․ A ban on non-compete clauses in contracts of employment below a salary threshold
7․ How the government could ensure that a ban below a salary threshold also supports higher-paid innovators, experts and entrepreneurs in the UK
8․ A combination of a ban below a salary threshold and a statutory limit for those who earn above the threshold
9․ Whether restrictions should be limited to non-compete clauses only or should also apply to other restrictive covenants
10․ How the government can ensure that other restrictive covenants, for example non-dealing clauses, are not used in a way that would have a similar effect as a non-compete clause, if restrictions were limited to non-compete clauses only
11․ Whether restrictions on non-compete clauses should be limited to employment contracts or whether the government should consider applying them to wider workplace contracts
12․ Any evidence demonstrating that a ban, or restrictions, on non-compete clauses could impact inward investment or investment in training and upskilling
13․ Any obstacles to bringing claims on restrictive covenants, including non-compete clauses, in the courts
14․ Whether these obstacles are related to concerns about the costs of bringing a claim, and whether there are barriers to prospective claimants accessing mechanisms to reduce or predict costs (for example, FRC, LEI, CFA or DBA)
15․ Any suggestions for what the most appropriate response would be, and how it might be implemented
Respond to this working paper online
or
Respond by emailing noncompeteclauses@businessandtrade.gov.uk.
This working paper was published on:
- 26 November 2025
It closes for responses at:
- 11:59pm on 18 February 2026
PAYadvice.UK 28/11/2025