It’s a possibility following the publication by the Government of a working paper on options to reform non-compete clauses in contracts.
Extensive research and consultation into the use of non-competes by YouGov has revealed that 71% of non-competes are for longer than three months and that they can be as long as 24 months in some cases. There is a suggestion that a statutory limit of 3 months should be applied to non-competes.
A non-compete clause is a contractual term that restricts an employee’s ability to work for a competing business. The Government is concerned that non-competes are impacting economic growth.
The aims of the reform of non-competes are set out in the working paper and include:
- Boosting labour market dynamism;
- Reducing barriers to recruitment;
- Promoting competition and innovation;
- Protecting workers so that they do not have to face extended periods of time out of the labour market.
The working paper outlines options, including:
- a statutory limit on the length of non-compete provisions;
- a statutory limit linked to business size;
- restricting the use of non-compete provisions to high earners only;
- an outright ban on any form of non-compete clause.
The closing date for responses and views is 18 February 2026.
You can respond online to the working paper, or you can email noncompeteclause@businessandtrade.gov.uk.
