Scale-up leaders call for action on non-competes and notice periods to speed up hiring

According to new research from Enterprise Britain, nearly nine in ten scale-up leaders say non-competes have made it harder to hire the people they need. Nearly eight in ten say the same about long notice periods.

A survey of more than 400 leaders of the UK's fastest-growing companies has found that restrictive employment contracts are choking off the flow of talent that businesses need to grow.

The survey shows:

• Non-competes and notice periods are holding back hiring: 87% of scale-up leaders see non-competes as a hurdle when hiring; 79% said the same about long notice periods.
• Long notice periods are harming productivity: 55% of scale-ups say their employees’ productivity drops by at least 20% once they hand in their notice.
• Potential employees are missing out on opportunities: More than 2 in 5 (42%) have decided against hiring a specific candidate because of the length of their notice period or non-compete.
• The British economy is taking a hit: 75% believe the slow movement of talent is holding back economic growth.

Eva Barboni, Executive Director of Enterprise Britain, said:

“Scale-ups want to hire – quickly. But restrictive clauses in employment contracts are holding them back. This isn’t just bad for business; it’s bad for workers. Employees miss out on job opportunities, and far too many are forced to spend months without pay while they wait out non-compete clauses.”

Earlier this year, the government issued a working paper exploring reform options, ranging from restricting the length or scope of non-competes to banning them outright. Enterprise Britain is urging the government to enact a full ban – and go a step further by giving employees a one-sided right to shorten their notice periods to one month.

Eva added: “Companies are stuck in a race to the bottom on non-compete clauses. It might be tempting to play it safe and just limit their use. But the government should be bold and ban them outright, while giving employees the power to move more freely between roles.”

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Notes to Editors:

‍About Enterprise Britain

Enterprise Britain is a movement of entrepreneurs, business leaders, and investors on a mission to build a better future for the UK. We have come together to resist defeatism, reawaken ambition, help great businesses to grow, and ensure that future prosperity is shared more widely. 

Our media team can be reached at: press@enterprise-britain.com

Polling data

All figures are based on a survey conducted by Merlin Strategy of 423 leaders of some of the UK’s fastest-growing businesses. The sample was drawn from a list of companies that meet the OECD definition of a scale-up: a company that has grown by at least 20% per year over three years, in either headcount or revenue, with at least 10 employees at the start of the period. We further filtered the list to include only companies with at least 50 employees and a minimum annual revenue of £5 million. The fieldwork was carried out from 30 July to 8 August 2026.