Government proposes to limit non-compete clauses to three months
- BarrCo Solicitors
- Jun 2, 2023
- 1 min read
Currently, non-compete post-employment restrictions can be the hardest to enforce and must not go further than is reasonable to protect an employer’s legitimate business interests.
The Government has recently announced an intention to restrict the duration of non-compete restrictive covenants to three months by law.
Employers will still be able to restrict activities during garden leave or periods of notice, when the employee remains in paid employment.
The new law will not affect non-solicitation clauses or confidentiality clauses.
No time scale has been given but the press release states it will be done “when parliamentary time allows”.
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This proposal marks a significant step toward greater employee mobility and fairer labor practices. Limiting non-compete clauses to three months can help reduce unnecessary barriers for professionals looking to advance their careers, while still allowing employers a reasonable window to protect sensitive information. Striking this balance is key to fostering both innovation and competition in the workforce. Rotax 912 for sell
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