Non compete clauses are also commonly referred to as restrictive covenants or restraints of trade and are inserted in contracts of employment with the purposes of protecting the employer's business.
Common post termination restrictions include:
- Restrictions on working for a competing business, including one the ex-worker establishes themselves;
- Restrictions preventing the ex-worker from having dealings with the employer's customers or clients;
- Restrictions preventing the ex-worker from soliciting or employing employees of the former employer; and
- Restrictions on an ex-worker setting up a business in a geographical location that would disadvantage their ex-employer.
The purpose of the call for evidence is described as seeking views on whether non compete clauses could be "stifling British entrepreneurship" by preventing workers from starting up their own business after leaving a job. A request has been made for employers and workers experience of the use of such clauses, what the benefits and disadvantages and what issues have arisen in practice. You can respond to the call for evidence here.