Business Secretary Alok Sharma launched two consultations last week on ‘measures to reform post-termination non-compete clauses’ and ‘measures to extend the ban on exclusivity clauses’ in employment contracts.
The first consultation suggests a mandatory compensation requirement for any employers that use non-compete clauses or even banning them altogether. The second would ban exclusivity clauses, which prevent workers from taking on additional work with other employers, where the guaranteed weekly income is below the lower earnings limit, currently £120 a week. Exclusivity clauses were banned for workers on zero-hours contracts in 2015. Both consultations end on 26 February 2021.
Andy Chamberlain, director of policy at IPSE, said paring back restrictive contract features could ‘help open up opportunities for the self-employed’.
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