The Department of Business Innovation and Skills has launched a call for evidence to gather information on the use of non-compete clauses in employment contracts. There have been suggestions that they can hinder start-ups from hiring the best and brightest talent, so the government is asking for views from individuals and employers on whether this type of practice is acting as a barrier to innovation and employment.
Such clauses, also referred to as restrictive covenants, are particularly common in the contracts of recruitment consultants due to the competitive nature of the sector, churn of personnel and the intrinsic value of client and candidate lists. However, it remains the case that the use of these restrictions in employment contracts is widespread regardless of the sector or the seniority of the individual who is to be subject to them.
The ARC will be responding to the call for evidence and would welcome the views of any members. The deadline for the consultation is 19 July 2016. We would invite any members who would like their views represented to contact ben@arc-org.net by 5 July 2016.
The consultation can be found here (a link is also available on the ARC website): https://www.gov.uk/government/consultations/non-compete-clauses-call-for-evidence
