Lawyers raise red flags over Labour’s non-compete shake-up

cityam

Mar 02

Sir Keir Starmer, Labour leader and PM The future of non-compete clauses in the UK is at a crossroads, with the government considering major reforms, but lawyers warn that this could lead to ...

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shake-up","media":"cityam","content":"<div>\n<p>Sir Keir Starmer, Labour leader and PM The future of non-compete clauses in the UK is at a crossroads, with the government considering major reforms, but lawyers warn that this could lead to ...</p>\n\n<a href=\"https://www.cityam.com/lawyers-raise-red-flags-over-labours-non-compete-shake-up/\">Source Link</a>\n\n</div>\n","source":"cityam_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Lawyers raise red flags over Labour’s non-compete shake-up</title>\n<style 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to ...</p>\n\n<a href=\"https://www.cityam.com/lawyers-raise-red-flags-over-labours-non-compete-shake-up/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ELA","symbol_name":"Envela Corporation","start_time":0,"source_url":"https://www.cityam.com/lawyers-raise-red-flags-over-labours-non-compete-shake-up/","article_id":"2616557363","we_media_id":null,"thumbnails":["https://www.cityam.com/wp-content/uploads/2026/01/GettyImages-2256223429-e1768474953201.jpg?w=286&h=161&crop=1"],"rights":{"source":"cityam_highlight","url":"https://www.cityam.com/lawyers-raise-red-flags-over-labours-non-compete-shake-up/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2616557363","pubTimestamp":1772463306,"columns":[],"sourceInfo":{"source_id":"cityam_highlight","name":"cityam"},"weMediaInfo":null,"summary":"Sir Keir Starmer, Labour leader and PM The future of non-compete clauses in the UK is at a crossroads, with the government considering major reforms, but lawyerswarn that this could lead to unintended consequences for both businesses and workers.Non-compete clauses in the UK restrict employees from joining competitors post-employment, but are enforceable only if reasonable in scope, duration, and geography to protect legitimate business interests.However, whilst this is a longstanding employment practice, the Labour government is actively consulting on a proposed three-month cap, as part of its overhaul of workers’ rights.Other options on the table include making non-competes illegal in employment contracts entirely, following the lead of places like California.The group of specialised lawyers also warned that if non-competes are banned or severely limited, employers will simply find other ‘workarounds’ that could be even more restrictive for workers, including increased use of ‘garden","collect":0,"end_time":0,"defaultTopTitle":"cityam.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"ELA":"Envela Corporation","BK4200":"专卖店"},"translate_title":"律师对工党竞业禁止重组提出危险信号","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ELA":1},"content_text":"Sir Keir Starmer, Labour leader and PM The future of non-compete clauses in the UK is at a crossroads, with the government considering major reforms, but lawyers warn that this could lead to unintended consequences for both businesses and workers.Non-compete clauses in the UK restrict employees from joining competitors post-employment, but are enforceable only if reasonable in scope, duration, and geography to protect legitimate business interests.However, whilst this is a longstanding employment practice, the Labour government is actively consulting on a proposed three-month cap, as part of its overhaul of workers’ rights.Other options on the table include making non-competes illegal in employment contracts entirely, following the lead of places like California.\n\nThe government revealed its ‘working paper’ in February, and it is now reviewing the evidence to decide which path to take.\n\n\n\n\n\n\nNews Updates\nStay ahead with our three daily briefings delivering all the key market moves, top business and political stories, and incisive analysis straight to your inbox.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nHowever, the Employment Lawyers Association (ELA) hit back, arguing that the current common law system, which has developed over centuries, effectively balances the interests of employers and employees.The ELA describes the government’s plan for a three-month cap as a “blunt instrument” that fails to account for the specific needs of different business sectors and roles.More time in the garden?The group of specialised lawyers also warned that if non-competes are banned or severely limited, employers will simply find other ‘workarounds’ that could be even more restrictive for workers, including increased use of ‘gardening leave’.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}