Hot on the heels of previous signals of potential change (see here and here), the UK government quietly published a working paper inviting views on options for reform of non-compete clauses in employment contracts. With the consultation period open until 18 February 2026, stakeholders are being asked to consider proposals that may fundamentally reshape the UK’s approach to post-termination restrictions.
Why reform non-competes?
Non-competes have for some time occupied a debated corner of employment law. The government’s paper restates the core concern – while non-competes can protect legitimate business interests, they also risk restricting job mobility, stifling competition and innovation, and placing individuals (including in lower-paid roles) in a position where they comply by default rather than legal necessity, due to fear of litigation costs and uncertainty.
Empirical evidence from the UK and internationally suggests that non-competes are widely used, sometimes regardless of true enforceability. Notably, their use is not limited to high earners – 20-30% of lower-paid workers report being subject to such clauses, according to research cited by the Competition and Markets Authority.
What are the options for reform?
The working paper outlines several broad options for reform, each with different implications for the balance between business protection and labour market dynamism.
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