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Legal News | 19.02.21

Post-termination non-compete clauses in employment contracts

As you may already be aware, on 4 December 2020 the Department for Business, Energy & Industrial Strategy (BEIS) opened a consultation on measures to reform post-termination non-compete clauses in employment contracts.

This consultation will assess proposals to:

  1. Require employers to continue paying compensation to employees for the duration of a post-termination non-compete clause;
  2. Require employers to confirm in writing to employees the exact terms of a non-compete clause before their employment commences;
  3. Introduce a statutory limit on the length of non-compete clauses; or
  4. Ban the use of post-termination non-compete clauses altogether.

Nothing definitive has been decided yet, and we will provide a further update after the consultation closes on 26 February 2021.

If you would like more specific advice on how these changes could affect your business please get in touch with your usual contact or email: emma.jewell@wansbroughs.com.