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Prohibit Non-compete clauses

The FT have published a longish piece about non-compete clauses in employment contracts,

In it they say, that “The restrictions are cropping up globally — from the UK, where more than a quarter of the workforce, or about 10mn people, are subject to non-compete clauses, according to a January report from the Competition and Markets Authority”.

These clauses are creeping across industry, from fitness centres to beauty salons. UK law places constraints on the conditions and duration that can be placed using these clauses but they create fear and are, for some, effectively “quartz” handcuffs. They also act as a wage suppressant.

The report anticipated the US FTC’s decision to ban them and focuses on the US labour market.

Our branch took such a motion to Congress but the CEC asked for it to be referred as they wanted time to make up their mind.

The US have now abolished them, the UK should do so too.

Posted: 25th April 2024

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