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Monday, September 14, 2026

UK Employment Law: Government plans to cut Red Tape for UK ... - Lexology

Introduction

On 10 May, the Department for Business and Trade (the “DBT”) released the regulatory reform update “Smarter Regulation to Grow the Economy” – the first in a series of updates on how the government intends to reform regulations to support economic growth. This first package of updates addresses employment regulations, which the DBT have identified as a key area to reduce the administrative burden on UK businesses following the UK’s departure from the European Union. The aim of these reforms is to boost the UK economy by cutting red tape for UK businesses, whilst maintaining UK labour standards. The government’s updates suggest there will be deregulation in the following three areas of employment law:

  • The Working Time Regulations 1998 (the “WTR”);
  • The Transfer of Undertakings (Protection of Employment) (“TUPE”) Regulations 2006; and
  • Non-compete clauses.

Reducing WTR reporting burdens

The WTR contains a range of obligations relating to working time and calculation of annual leave entitlement and pay. The DBT “will be consulting” on a range of reforms to the WTR, though it is unclear when this will take place.

The TUPE Regulations provide protections for employees when the business/organisation for which they work transfers to new ownership. The DBT is consulting on simplification of information and consultation requirements in a TUPE context.

Currently, businesses (of any size) cannot consult directly with affected employees when there are no employee...



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