Nath Solicitors examines the specifics of non-compete clauses and the initiative to reform them within employment contracts.
The Current Position on Non-Compete Clauses
Non-compete clauses are generally considered void and unenforceable if they extend beyond what is necessary to protect a business’s legitimate interests. These interests may include protecting confidential data, trade secrets and the company’s goodwill and reputation. To be enforceable, non-compete clauses must be carefully drafted and be reasonable in their scope, duration, and geographic reach.
The May 2023 Government Consultation
In December 2020 and February 2021, the UK Government began a consultation aimed at reforming the use of non-compete clauses in employment contracts. Following this, in May 2023, the Government proposed to restrict non-compete clauses to a maximum of three months post-employment. The goal was to reduce barriers for employees switching jobs and to encourage a more competitive and dynamic workforce.
Notably, these reforms were intended to apply only to non-compete provisions, and not to other post-termination restrictions such as non-solicitation or non-dealing clauses, which could still be enforced past the three-month limit. However, the proposed reforms were not implemented at that time.
The 2025 Government Update
On 21 July 2025, and during a debate in the House of Lords regarding the Employment Rights Bill, Baroness Jones announced the Government plans to consult further on possible reforms to non-compete clauses “in due course.” This followed remarks by Lord Pitkeathley, who raised concerns about non-compete clauses potentially hindering innovation and competition. Baroness Jones confirmed the Government continues to review the existing research and policy work in this area and is preparing for future consultation.
What This Means for Employers and Employees – and How Nath Solicitors Can Help
The stance on non-compete clauses highlights a shift toward greater employee mobility and fewer restrictive employment practices. If the proposed reforms go ahead, employers may need to revise employment contracts specifically dealing with the duration of non-compete periods. Nath Solicitors have expert specialists on hand to guide both employers and employees through these changes.
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