Caroline Field has warned of the ‘unforeseen consequences’ for entrepreneurs and business growth of possible new legislation on non-compete clauses. Proposals include banning the use of such clauses or requiring compensation for employees during the duration of a lawful non-compete restriction.
Speaking to Personnel Today regarding the Government’s recent consultation, she shared concerns about a lack of clarity over how the position would be improved by legislation and that proposals may stifle investment.
“There is already a well-established common law framework on restrictive covenants and a presumption of unenforceability unless they are proved reasonable.”
The consensus view in the responses to the Call for Evidence in 2016 on non-compete clauses was that
“restrictive covenants are a valuable and necessary tool for employers to use to protect their business interests and do not unfairly impact on an individual’s ability to find other work”.
You can read the full Personnel Today article here.
