Government Plans to Investigate Red Tape “Stifling” British Businesses

Business secretary Sajid Javid has launched a ‘call for evidence’; asking for views on ‘non-compete clauses’ in employee contracts

Government Plans to Investigate Red Tape “Stifling” British Businesses

Employment rules that could be ‘stifling British entrepreneurship’ by preventing employees from starting up their own business after leaving a job are to be investigated, business secretary Sajid Javid has announced.

Businesses across the UK are to be asked their views on ‘non-compete clauses’ among other employment related issues in a government effort to back small businesses and entrepreneurs.

The research will also contribute to the government’s ‘Innovation Plan’ – which is focused on promoting high tech business and advanced manufacturing

‘Non-compete clauses’ can be written into employment contracts and can prevent individuals from competing against their former employer or working for a competitor for a set period of time, sometimes up to nine months after leaving a firm and is enforceable in a court of law.

The findings, which will help develop the government’s National Innovation Plan, will be published later this year.

Javid commented:

“Home to some of the most innovative companies in Europe, Britain is already ahead of the curve in many ways when it comes to driving forward new ideas.

“But I am clear that I want to see more enterprising start-ups and greater productivity in a free and fair marketplace, by making sure we take action to break down any barriers that are curbing innovation and entrepreneurship.”

UK businesses that wish to express their views on non-compete clauses can fill out the survey online here.

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