Skip to content

Menu

LexBlog, Inc. logo
NetworkSub-MenuBrowse by SubjectBrowse by PublisherBrowse by ChannelAbout the NetworkJoin the NetworkProductsSub-MenuProducts OverviewBlog ProBlog PlusBlog PremierMicrositeSyndication PortalsAbout UsContactSubscribeSupport
Book a Demo
Search
Close

Post-Brexit UK Employment Reform: Three month cap on non-competes and other changes

By Nicola J. Bartholomew & Kelly McMullon on May 16, 2023
Email this postTweet this postLike this postShare this post on LinkedIn

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 UK’s 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?

  • Non-Competes limited to three months: The biggest news is that, the UK Government plan to limit the length of non-compete clauses in employment contracts to three months post-termination. The upper limit of what was enforceable in the UK has tended to be 12 months in an employment context, subject to considerations such as the employee’s role, the scope of the restriction and the legitimate interest of the employer. It is interesting that this proposal follows shortly after the US Federal Trade Commission’s proposal to ban non-competes.

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.

  • Minor changes to TUPE: The Transfer of Undertakings (Protection of Employment Regulations) (known as TUPE) provide a number of protections to employees and obligations on employers in the event of a business sale or where there is a so-called “service provision change”. With a view to simplifying the requirements and reducing the burden on employers, the Government are looking to allow businesses, where there are fewer than 50 employees and for transfers affecting less than 10 people, to consult directly with affected employees rather than having to elect representatives. Whilst this is a welcome easing of the rules, in practice this is only a minor change and there remain a number of aspects of TUPE that businesses would like to see reviewed.
  • Changes to Working Time Records: Due to retained EU law, several requirements remain on UK employers in respect of working hours. The Government will consult on proposals to remove the requirement to keep working hours records for most members of the workforce.
  • Changes to Holiday pay: At present, UK employees have two separate holiday entitlements made up of a core 4 weeks leave (under EU law) and an extra entitlement to 1.6 weeks (under UK law). The Government plan to combine these entitlements to one “pot of statutory annual leave”. In addition, rolled up holiday will be permitted to allow workers to receive their holiday pay in every payslip.
  • No more sunset clause: As part of the Retained EU Bill, controversially, the plan was that a raft of EU derived laws would be automatically removed at the end of 2023 unless replaced or expressly retained. However, the Government have now announced that this “sunset clause” will be removed and instead only a specific list of relatively obscure EU derived employment law regulations will be removed.
Photo of Nicola J. Bartholomew Nicola J. Bartholomew

Nicola is a special international labor & employment counsel in the Labor & Employment Law Department.

Nicola advises clients across numerous sectors on a broad range of transactional and advisory employment law and HR matters. Prior to joining Proskauer, she trained and worked…

Nicola is a special international labor & employment counsel in the Labor & Employment Law Department.

Nicola advises clients across numerous sectors on a broad range of transactional and advisory employment law and HR matters. Prior to joining Proskauer, she trained and worked in leading Magic Circle firms. She also spent a number of years at another leading US law firm and completed a secondment to a global investment bank.

Nicola assists clients in proactively managing HR legal risk on a strategic and day-to-day level. She specializes in:

  • Advising on corporate and commercial transactions with a particular emphasis on the application of TUPE in business transfers, and outsourcing/services arrangements including advising and supporting clients through TUPE information and consultation processes;
  • Advising clients on the full employment life-cycle from complex hires, performance management, grievance and disciplinary procedures to reorganizations and terminations both in the UK and globally;
  • Drafting and negotiating key employment and benefits related agreements including offer letters, contracts of employment, senior executive agreements, bonus and retention arrangements, consultancy agreements, settlement arrangements, secondment and other HR documentation. Guiding clients in drafting, analyzing, and implementing non-competition and confidentiality agreements and other business protection measures;
  • Counselling and supporting teams in the design, implementation and administration of HR policies;
  • Advising on Senior Manager and Certification Regime and Remuneration Code issues;
  • Working closely with key stakeholders, HR and in-house legal teams advising on individual and collective redundancy programs and senior and executive terminations;
  • Collaborating with global employment teams on international employment HR programs; and
  • Creating and delivering training on key HR issues and advising on changes in law including on COVID-19, employee status issues and IR35.
Read more about Nicola J. BartholomewEmail
Show more Show less
Photo of Kelly McMullon Kelly McMullon

Kelly M. McMullon is special international labor, employment & data protection counsel in the Labor & Employment Law Department and member of the Firm’s International Labor & Employment, Privacy & Cybersecurity and Sports Groups. Kelly has been recommended in Legal 500 UK for…

Kelly M. McMullon is special international labor, employment & data protection counsel in the Labor & Employment Law Department and member of the Firm’s International Labor & Employment, Privacy & Cybersecurity and Sports Groups. Kelly has been recommended in Legal 500 UK for her “responsiveness and practicality.”

Kelly assists clients in a variety of sectors including financial services, asset management, life sciences, fintech, consultancy, retail, sports, leisure and manufacturing in a wide range of contentious and non-contentious matters.

In her employment practice, she provides general day-to-day counselling and advice on all employment-related issues, including hires, terminations, grievances and redundancies, as well as the employment aspects of transactions.

In her data protection practice, Kelly provides strategic advice as well as practical support and guidance on all aspects of data protection compliance, including international transfers of personal data, data breaches, direct marketing and employee data protection concerns. She also provides advice on the data protection aspects of transactions.

Kelly also has experience working with businesses on CSR and ESG initiatives, human rights and modern slavery issues.

Kelly is a contributor to Proskauer’s International Labor and Employment Law and Proskauer on Privacy blogs and is the Editor for Proskauer on Privacy’s “International Data Privacy” chapter. She regularly provides training and speaks on employment and data protection issues.

Her pro bono experience includes counselling not-for-profit organizations on data privacy and employment-related issues.

Read more about Kelly McMullonEmail
Show more Show less
  • Posted in:
    Employment & Labor, International
  • Blog:
    International Labor and Employment Law
  • Organization:
    Proskauer Rose LLP

LexBlog, Inc. logo
Facebook LinkedIn Twitter RSS
Real Lawyers
99 Park Row
  • About LexBlog
  • Careers
  • Press
  • Contact LexBlog
  • Privacy Policy
  • Editorial Policy
  • Disclaimer
  • Terms of Service
  • RSS Terms of Service
  • Products
  • Blog Pro
  • Blog Plus
  • Blog Premier
  • Microsite
  • Syndication Portals
  • LexBlog Community
  • Resource Center
  • 1-800-913-0988
  • Submit a Request
  • Support Center
  • System Status
  • Resource Center
  • Blogging 101

New to the Network

  • Tennessee Insurance Litigation Blog
  • Claims & Sustains
  • New Jersey Restraining Order Lawyers
  • New Jersey Gun Lawyers
  • Blog of Reason
Copyright © 2025, LexBlog, Inc. All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo