UK government says it will legislate to restrict non-compete clauses across the economy
Key points
- The government will legislate to restrict non-compete clauses
- The October 28 Budget confirmed the reforms apply across the whole economy
- A detailed government position is planned for early 2027, after a consultation
The UK government has announced it will legislate to restrict the use of non-compete clauses. Prime Minister Andy Burnham said on October 9, 2026 that some employers had gone too far in using such restrictions. The October 28 Budget confirmed the reforms will apply across the whole of the economy. The government says a consultation will be launched shortly, with a detailed government position to be published in early 2027 before legislation. Not legal advice.
What employers should do
- Review existing non-compete clauses for UK employees
- Monitor the consultation and the government's position paper
Policy details
- Jurisdiction
- United Kingdom
- Status
- Proposed rule
- Effective date
- —
- Employers covered
- Across the whole of the economy
- Official source
- Official source pending
Original report: Littler Mendelson P.C. ↗Edited with AI assistance. Facts are based on official sources and original reports. For information only; not legal, immigration or insurance advice.