On 26 November 2025, the UK government published a working paper inviting views on options to reform non-compete clauses in employment contracts. The proposal, which was originally indicated in 2020 but not included in the current government’s “Plan to Make Work Pay,” now calls for views through consultation.

Quick Hits

• The UK government has reopened discussion on amending the law on restrictive covenants, which seemed to have been ruled out in previous consultations.
• The government issued a working paper on 26 November 2025, seeking comments on introducing a statutory limit on duration, an outright ban on certain covenants, a ban below a salary threshold, or a combination of these measures.
• The working paper signals a trajectory towards tighter, more standardised measures with greater emphasis on transparency.

Options proposed include an outright ban on non-competes or an appropriate statutory cap on the duration of non-competes, which could be shorter or longer than the original proposal of three months. The government is also seeking views on varying the cap by employer size, for example, imposing a three-month limit for small organisations and a longer ban for organisations with more than 250 employees. However, the paper recognises that a six-month limit would have a limited impact as this is already the most common length used by organisations. Importantly, the principle that non-competes are enforceable only if they protect legitimate business interests, such as...

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