Non-competition clauses: Government to examine impact on innovation

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The Government is to examine whether or not non-competition clauses in employment contracts are stifling innovation and growth. Restrictive covenants, known colloquially as "non-compete clauses", refer to contractual terms that prevent former employees from working with a competitor, contacting former clients or hiring former colleagues for a period of time after their employment. Non-compete clauses can protect business relationships or confidential business secrets, but they can be deemed anti-competitive if they are used too broadly. Non-competition clauses are difficult to enforce against a former employee in court unless drafted to be no wider than necessary.

Launching a call for evidence, the business secretary Sajid Javid said: "Home to some of the most innovative companies in Europe, Britain is already ahead of the curve in many ways when it comes to driving forward new ideas.

"But I am clear that I want to see more enterprising start-ups and greater productivity in a free and fair marketplace, by mak