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Tuesday, September 15, 2026

Government to cap non-competes and make limited changes to ... - Lewis Silkin

Non-competes will be limited to three months, rolled up holiday pay will be allowed and employers will not always have to elect representatives for TUPE transfers, according to the government’s Smarter Regulation paper released today. The government has also backtracked on the controversial sunset provision in the Retained EU Law Bill.

In its policy paper on Smarter Regulation to Grow the Economy the government has given us a first glimpse of how it plans to reform employment law post-Brexit. The biggest news is the plan to limit non-competes to three months (although this has nothing to do with Brexit, as the EU never regulated non-compete clauses). The government has also agreed to scrap the controversial sunset clause in its Retained EU Law Bill, which could have seen thousands of EU-based laws disappear at the end of 2023. Limited reforms to the Working Time Regulations and TUPE have also been announced. This article discusses the implications for employers.

Non-compete clauses to be limited to three months

The government will limit the length of non-compete clauses to three months, according to the policy paper.

Non-compete clauses are one type of post-termination restriction (PTR) – also known as “restrictive covenants” – that an employer may seek to include in a contract of employment. Non-compete clauses – and PTRs more generally – are governed by case law which has developed over time and provides that PTRs will only be enforceable if they are no wider than is...



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