A consultation on measures to reform post-termination non-compete clauses in employment contracts has closed, but critics are concerned it could “disincentivise investment” in some businesses.

The government sought views from early December from business owners, employees and legal and HR professionals on the enforceability of non-compete clauses following the termination of employment.

The consultation was prompted by the economic impact of covid-19. Despite intervention measures, UK GDP remains at 9.2 per cent below February 2020 levels, with unemployment rising. 

Non-compete clauses restrict an ex-employee’s ability to work for a competitor or to establish a competing business for a set period ...

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