REC response to Prime Minister’s comments on non-compete clauses: ‘Businesses need confidence that they can protect their investments’

Responding to the Prime Minister’s comments on non-compete clauses, Recruitment and Employment Confederation (REC) Director of Campaigns Shazia Ejaz said:

“Businesses need confidence that they can protect the investments they make in growing their businesses, innovation and their people. Any reforms to non-compete clauses should preserve those legitimate protections. These clauses play a vital role in safeguarding commercially sensitive information and customer relationships, giving employers the confidence to invest, innovate and grow.

“Employers spend significant time and money developing talent. If businesses cannot protect that investment, many will think twice before committing resources to training and workforce development. The challenge for policymakers is to improve labour market flexibility without weakening the incentives that drive growth.

“The government is right to consider whether non-compete clauses are proportionate and time-limited. But sweeping reforms that undermine legitimate business protections risk creating uncertainty for employers and damaging investment.”