Consultation: Restrictive Covenants

04 December 2020

The Department for Business, Energy and Industrial Strategy (BEIS) has published a consultation paper which seeks views on proposed measures to amend post-termination restrictive covenants.

With thanks to Daniel Barnett’s Employment Law Bulletin.

The consultation offers two key considerations:

  • Amending the law so that post-termination restrictive covenants are only enforceable in scenarios where the employer continues to pay remuneration during the restricted period
  • Banning post-termination restrictive covenants in their entirety

The consultation paper has been issued in order to support the economic recovery following on from the outbreak of coronavirus as the Government seeks ways in which to boost innovation, to create conditions for new jobs and to increase competition.

The consultation is live now, and there is the opportunity to respond until it closes on 26 February 2021.


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