Last Friday, the Prime Minister revealed in his speech at the Innovation Nation Summit that the Government will clamp down on non-compete clauses in employment contracts. The aim is to free up the market for high skilled works, with Andy Burnham noting that some clauses have “gone too far”.
Non-compete clauses are common for roles that require specialist skills in sectors such as tech, finance and insurance to protect a company’s intellectual property.
“Many employers in the City view non-compete provisions as essential protection to ensure that key individuals are not able to ‘jump ship’ quickly, taking with them key relationships, knowledge and business strategy,” explained Mark Callaghan, senior associate at law firm Littler.
