Hedge Funds Get Jittery on Prospect of UK’s Non-Compete Ban

The UK is reviving a plan to make it easier for employees to switch jobs, putting financial firms on edge, as some of the most controversial non-compete clauses in their hiring contracts come under scrutiny once again.

The government published a paper along with the budget last week, seeking industry feedback on overhauling employment agreements. Proposals include an outright ban on non-compete conditions — terms that prevent people from working for, or establishing a rival business for a set period of time after leaving a job. Other ideas being floated include capping the cooling-off time at three or six months, depending on the size of a company or the salary.