UK government plans ban on non-compete clauses

The government believes these clauses, which are common in sectors like tech and finance, undermine innovation and restrict the jobs market for highly skilled workers. The founders of over 20 U.K. tech start-ups had previously written to the government, stating that such restrictions, along with long notice periods and enforced gardening leave, were "undermin[ing] the innovation that drives economic growth."

Previous options considered by the government, set out in November 2025, ranged from a total ban to a partial ban, such as allowing clauses only for workers above a certain salary threshold or limiting their duration. However, some sources suggest the government will announce a broad intention to address the issue rather than specific details, with further consultation with industry to follow.

AI Minister Kanishka Narayan recently stated that the government was "working extremely rapidly" on potential changes. The lobby group TheCityUK has opposed a ban, arguing that non-compete clauses are crucial for protecting confidential information and intellectual property, thereby promoting competition and innovation.