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25 Apr 2016

UK employment laws changing to boost entrepreneurship

The government plans to amend UK employment rules to encourage the country´s entrepreneurial spirit, the Business Matters magazine reports.

Following the publication of a report which claims that British entrepreneurship is being constrained, Business Secretary Sajid Javid is launching a call for evidence requesting views on ‘non-compete´ clauses.

These clauses are sometimes written into employment contracts, preventing individuals from competing against their employer or working for a competitor for a certain period of time after leaving the company – in some cases, this can be as long as 9 months.

But some experts argue that these clauses prevent start-ups from being able to hire top talent, limiting the potential of Britain´s entrepreneurial economy. So, employers and individuals are now being asked by the government for their views on this practice and whether it is stifling innovation and employment.

Due to be launched soon, the call for evidence will see firms across the country contributing their views on the matter. The survey findings will form part of the government´s Innovation Plan, which will detail how Britain can create more opportunities for its businesses to tap into lucrative markets, thus leading the fourth industrial revolution in innovation and new technology.

With some of Europe´s most innovative sectors having a base in the UK – ranging from aerospace to biopharmaceuticals – it´s important for the UK to stay “ahead of the curve […] when it comes to driving forward new ideas,” says Javid.

“But I am clear that I want to see more enterprising start-ups and greater productivity in a free and fair marketplace, by making sure we take action to break down any barriers that are curbing innovation and entrepreneurship,“ he added.

Copyright M2 Bespoke 2016

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