This working paper forms part of the government’s broader agenda to improve labour market dynamism, strengthen competition for talent, and support start-ups and scale-ups. It seeks evidence on whether the widespread use of noncompete clauses restricts mobility, suppresses wages, reduces knowledge diffusion, and constrains the creation of new businesses, particularly for lower-paid workers, who may be deterred from challenging unenforceable clauses.
This GT Alert summarises the current legal framework for noncompete clauses, the UK government’s options for reform, and the potential implications for employers.