On 10 May 2023, the United Kingdom’s Department for Business and Trade published its policy paper, “Smarter Regulation to Grow the Economy.” The proposals contained therein are intended to “improve regulation across the board to reduce burdens, push down the cost of living, and drive economic growth.”

Given the drive of economic growth, a number of employment-related reforms have been announced, including proposed changes affecting non-compete agreements, Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) requirements, the Working Time Regulations 1998, and retained EU law.

Quick Hits

• The Government is proposing to limit non-compete agreements to three months.
• The Government is proposing to remove certain TUPE requirements so that small employers can consult directly with employees.
• The Government will be consulting on several revisions under the Working Time Regulations 1998.

Non-compete Restrictions

The UK Government plans to limit the length of post-termination non-compete restrictions to three months. Non-competes (a type of restrictive covenant) restrict employees from entering into competition with their employers (i.e., setting up competing businesses or working for competitors) for a specified length of time after their termination dates.

Currently, non-competes are not governed by legislation and are instead deemed enforceable by the courts if a restriction is “reasonably necessary” to protect an employer’s “legitimate business...

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