The founders of more than 20 U.K. tech start-ups wrote to the government last month saying the restrictions, along with long notice periods and enforced gardening leave, were and “undermin[ing] the innovation that drives economic growth”.
The options set out 11 months ago ranged from a total ban on non-compete clauses to a partial ban, such as allowing non-compete clauses only for workers earning more than a set salary threshold, or limiting their length.
However, two of the six people quoted above said that the government would stop short of backing a specific option at this stage.
Ministers are expected to set out a broad intention of ensuring that non-compete clauses are no longer a hiring problem for start-ups and innovative firms, but finer details will be worked out further down the line in consultation with industry.
No. 10 declined to comment.
The announcement comes after Chancellor John Healey said he wanted to tackle the costs for businesses in his budget on Oct. 28. One of the six people quoted above said: “They want to sell it as pro growth and freeing up the labour market.”