There are no provisions in the ERA 2025 that address non-competes, and the Plan to Make Work Pay did not mention them either. The previous Conservative government had intended to limit the duration of non-compete restrictions to three months (see our earlier articles here and here), but this was moved down the agenda and never came to fruition. Despite earlier silence on the issue, the Labour Government confirmed during debates on 21 July 2025 that the Government will consult on this issue in due course.
Following this, a working paper was published on 26 November 2025, which seeks views on different policy options, including:
- Introducing statutory limits on the length of non-compete clauses, exploring limits on the length of non-competes or limits that differed according to company size
- Banning non-compete clauses in employment contracts
- Banning non-compete clauses below a salary threshold
- Combining a ban below a salary threshold with a statutory limit of 3 months for those who earn above the threshold
The consultation also asks:
- Whether there are any obstacles to bringing claims on restrictive covenants, including non-compete clauses, in the courts
- Whether any restrictions should be limited to non-compete clauses only or should also apply to other restrictive covenants (e.g. non-dealing clauses)
- Whether any restrictions should be limited to employment contracts or whether they should be applied to wider workplace contracts
Timing and developments
Not included in the ERA 2025.
A working paper was published on 26 November 2025 and responses were to be submitted by 18 February 2026. Timing for implementation is currently unknown. (and this has not been included in the Government’s updated timeline).