The government has launched consultations on possible changes to the law regarding the use of post-termination non-compete clauses in contracts of employment and a possible ban on the use of ‘exclusivity clauses’ for low paid workers.
What are the key points?
Consultation on measures to reform post termination non-compete clauses
The government has said that they “want to maximise opportunities for individuals to start new businesses, find new work and apply their skills to drive the economic recovery. For these reasons [they] are seeking views on reforms to non-compete clauses.”
The government are considering and consulting on:
Exclusivity Clauses
The government is also consulting on banning the use of exclusivity clauses in contracts which prevent people on low-incomes working for other employers or doing so without the employer’s consent. The ban is proposed to apply to workers whose guaranteed weekly income falls below the Lower Earnings Limit, currently £120 a week.
To allow business to protect their interests where they employ well paid individuals who only work a few hours a week, the government is proposing including an exemption to the proposed ban which would avoid capturing such individuals.
The government has said the proposed change would empower around 1.8 million low paid workers across the UK to top-up their income with additional work.
Both consultations close on 26th February 2021. Kingfisher Professional Services Ltd will keep you updated with any developments in these areas, in the meantime if you have an employment law matter you would like assistance with, please do not hesitate to contact us as we are happy to help.