Post-Brexit UK Employment Reform: Three month cap on non … – JD Supra

The UK Government has published a policy paper entitled Smarter Regulation to Grow the Economy (10 May 2023) that outlines a series of upcoming employment related regulatory reforms designed, in part, to take advantage of the UKs post-Brexit regulatory freedom. The stated aim is to reduce unnecessary regulation for businesses to ensure economic growth whilst maintaining existing UK labour standards.

What are the proposed changes?

There is no timeframe for this change to come into effect and, until the legislation is papered, the specific scope of this cap is yet unknown. For example, it is not yet known how this may impact non-competes in arrangements contained outside of the employment contract but that are related to employment (e.g. within incentive agreements). Whilst currently employers will still be able to include longer non-competes in employment contracts for now, in light of the proposed change, greater consideration should be given to notice periods, garden leave provisions, the use of non-solicitation and non-poaching provisions, and the wider set of protections available to employers when drafting and negotiating contracts of employment.

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Post-Brexit UK Employment Reform: Three month cap on non ... - JD Supra