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Conditions of Employment

Asked by Dan TomlinsonLabourDepartment for Business and TradeTabled Answered 25 March 2025UIN 39334

The question

To ask the Secretary of State for Business and Trade, what assessment he has made of the impact of employment contract non-compete clauses on (a) entrepreneurship and (b) economic growth.

Answered by Justin Madders

A dynamic and entrepreneurial workforce is good for economic growth. There is evidence to suggest that non-compete clauses can act as a barrier to this innovation-driven growth, as they can prevent individuals from working for a competing business, or from applying their entrepreneurial spirit to establish a competing business.

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