We surveyed our employer clients on the Government's recent proposals to reform non-compete clauses. Here are our findings.

Reform of non-compete clauses has returned to the Government's agenda - for the third time in a decade. In November 2025, the Government published a working paper setting out proposals to reform the law on non-compete clauses in employment contracts. The options on the table range from an outright ban to statutory duration caps and salary-based thresholds. The outcome matters to every employer that relies on these clauses to protect its business.

We wanted to know what employers actually think. We surveyed our employer clients to understand how they use non-competes today and how they view the Government's proposed reforms. The results reveal a clear message: the business community is not ready for radical change.

What do our respondents think of the Government's proposals to reform non-competes?

1. The most common preference was for the Government to maintain the status quo and refrain from changing the law in relation to non-competes. 
2. There was very little appetite for an outright ban, which was considered unnecessary and harmful to business, especially SMEs/early-stage companies.
3. Similar sentiments were expressed in relation to restrictions generally, with respondents noting that restrictions on non-competes could redirect investment away from the UK. 
4. Proposals to vary restrictions by reference to employer size and employee salary were also unpopular. Such proposals were considered blunt tools that failed to appreciate the multifactorial and nuanced reasons for non-competes.  
5. The Government's most popular proposal was for a statutory limit on the duration of non-competes, with preferences expressed for 6 months or 12 months.