Reform of non-competes
The Government published a Policy Paper on the reform of non-competes in late November 2025 and is seeking views on options for reform until 18 February 2026. The previous Government's plan in 2023 to impose a 3-month statutory time limit on non-competes did not materialize and the Government is now considering this as one of several options. The scope of the Policy paper is employment contracts only, also it does not extend to other types of restriction at present.
Currently, there are five options proposed in the Policy Paper:
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Introducing a statutory limit on the length of non-competes. This might be a limit of three months, a lesser or greater period. It is noted that it would undesirable if a statutory limit led to a presumption that statutory non-competes are 'standard', or that the common law requirement of reasonableness is dispensed with.
- Introducing a statutory limit based on the size of the company, such as three months for companies with more than 250 employees, and six months for companies with fewer than 250 employees. Such an approach would be favourable to smaller enterprises.
- Banning non-compete clauses altogether, as is the case in California. It is noted that this could lead to greater reliance on non-dealing clauses, gardening leave, confidentiality and intellectual property clauses.
- Banning non-competes below a certain salary threshold, as is the cases in Washington State, where non-competes are banned for those earning below £93,000.
- Combining a ban below a certain salary threshold and a statutory limit of 3 months.
Views on options for reform can be sent to: noncompeteclauses@businessandtrade.gov.uk
Home Office announces "earned settlement" consultation
On 20 November 2025 the Home Secretary Shabana Mahmood announced the start of a consultation called Earned settlement on the proposal to increase the standard qualifying period for settlement (or 'indefinite leave to remain') which will run until 12 February 2026. Changes are planned to begin in April 2026 and are expected to affect around 1.6 million people who arrived in the UK since 2021 and are forecast to settle between 2026 and 2030. We explain the implications in our recent briefing 'Home Office announces major consultation on increasing the settlement qualifying period'.
Do contact either Vikki Wiberg or Charlie Pring if you have any questions about the impact of the consultation on your or your employees' status in the UK, or to discuss your workforce planning and retention policies.
