In this week's update:

Government sets out proposed post-Brexit reforms to UK employment law

The Government has published its proposals to reforming the UK’s employment law framework following the UK’s withdrawal from the European Union (Brexit).

Its proposals are set out in a new policy paper, titled “Smarter regulation to grow the economy”. Separately, the Government has published a formal consultation on changes it proposes to make to EU employment law that has been incorporated into UK law following Brexit.

From the perspective of business mergers and acquisitions, the key proposals are as follows.

• The Government intends to limit the duration of non-compete clauses in employment contracts to three months. It is not clear whether this will apply to “paid non-compete covenants”, where an employee undertakes not to compete in return for a payment.The changes would not affect restrictions on soliciting employees, customers or suppliers, nor non-competes in a purely commercial context (such as on the sale of a stake in a business). The position is unclear for non-competes that apply on the sale of a commercial stake but are linked to employment (such as in typical “leaver provisions”). We await more detail on this in due course.
• The Government will consult on removing the requirement to elect employee representatives for consultations under the Transfer of Undertaking (Protection of Employment) Regulations 2006 (TUPE). The changes would apply to businesses with fewer than...

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