On Friday (9th Oct), the Prime Minister made a speech on Innovation which importantly for our branch included the promise to outlaw non-compete clauses in employment contracts. We welcome this as while the focus is often on very senior executives, non-compete clauses are often applied to junior staff in the services sector to protect relationships and not secrets.
The speech itself covers devolution of industrial planning, innovation in all industries, it’s inclusive of universities and life science research, and ambitious. It’s backed by £80bn of investment but what brought me to the speech is his promise to outlaw non-compete clauses.
Much of the attention It’s focused on the exceedingly highly paid and allegedly intellectual property protection. Non-compete clauses also impact many low paid people in the service sector.
Company secrets can be protected by other clauses in the employment contract; non-compete clauses are designed to protect relationships between the departing staff member and the company’s customers, staff or suppliers. Not only do they restrict labour mobility, they oppress the individual workers who are often not that well paid.
Our branch moved the motion at GMB Congress making opposition to non-compete clauses GMB policy. This blog hosts several articles on the topic.
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