The UK Competition and Markets Authority (CMA) has issued a response to the Department for Business and Trade's (DBT) working paper regarding potential reforms to non-compete clauses in employment contracts. The CMA's response highlights the critical role of labor market mobility in driving economic growth.

In its response, the CMA draws upon its previous report on competition and market power within UK labor markets, as well as additional evidence that illustrates the negative impact of non-compete clauses on labor mobility. The authority argues that reforming the current legal framework is essential to foster a more dynamic labor market.

The CMA also discusses various options for limiting the use of non-compete clauses. It supports a proposal to ban such clauses for employees earning below a certain salary threshold. For those above the threshold, the CMA suggests implementing a statutory limit on the duration of non-compete agreements as a balanced approach to reform.

For further inquiries regarding the CMA's response, interested parties are encouraged to contact the CMA advocacy team via email.