The Daily Telegraph quotes Nick Hurley on Labour’s plans to ban ‘non-compete’ agreements in the UK
UK businesses have warned that Labour’s proposed overhaul of hiring rules, particularly a potential ban on non‑compete agreements, could pose an “existential crisis” for British firms.
Non‑compete clauses, which affect around five million UK workers, typically prevent employees from joining rival companies or starting competing businesses for a set period after leaving a job. Labour argues that these clauses restrict worker mobility and economic growth, and is considering options ranging from an outright ban to tighter limits on their use.
Employer groups, however, caution that removing non‑competes entirely could have serious unintended consequences. Small businesses, in particular, fear that former employees could use confidential information to set up rival firms, threatening their survival. These concerns are heightened by Labour’s recently passed Employment Rights Act, which removes the cap on compensation for unfair dismissal claims.
Nick Hurley, Employment Partner, shares his thoughts on the 'potential ban' with The Telegraph.
He warns that a heavy-handed approach could make the UK less attractive to businesses:
What’s ironic about it is that a lot of the businesses – say the tech bros in California – they started things up here because we have got the ability to protect some of these interests.
"So we shouldn’t be aping too much ... what other countries or other territories are doing. It might discourage those employers from starting up.
Read the full piece in The Telegraph here.
