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ARTICLE · 23 FEBRUARY 2021

The End Of Post-Termination Non-Compete Clauses?

Non-compete clauses are already the most difficult restrictive covenants to enforce as they can easily amount to a restraint of trade if not specifically tailored to the employee.

United KingdomEmployment and HR

In an attempt to bolster competition and innovation following the disruption of the Coronavirus pandemic, the Department for Business, Energy and Industrial Strategy (BEIS) has issued a consultation paper exploring ways to reform non-compete restrictive covenants in employment contracts. Non-compete clauses are already the most difficult restrictive covenants to enforce as they can easily amount to a restraint of trade if not specifically tailored to the employee. BEIS is of the opinion that, non-compete clauses are being used too readily by employers and are concerned that this will restrict flexibility in the labour market, slowing the UK's economic recovery. Currently, BEIS is considering two options for reform.

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