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Government Consults on Non-Compete Clauses

As part of the Government’s drive to make Britain the best place in Europe to innovate and start a new business, the Department for Business, Innovation and Skills is seeking views on whether non-compete clauses stifle entrepreneurship and innovation by preventing people from:

  • moving between employers;
  • developing innovative ideas;
  • creating a start-up; and
  • growing a business.

Specifically, the questions being asked are designed to give a full understanding of the current situation, from the point of view of employers and employees, as regards when non-compete clauses are used, their prevalence and the benefits or disadvantages associated with them.

The closing date for responses is 19 July 2016. The consultation document can be found here.