The Law Society Gazette published an article by our legal director, Shoshana Bacall, on how the proposed new cap on non-competes could affect law firms advising businesses. Following the US Federal Trade Commission’s proposed ban on non-competes, the UK Government is planning to introduce a cap preventing non-compete clauses lasting longer than three months.
However, there is still a high level of uncertainty regarding when exactly this legislation could come into effect and the consequences. Our view is that, while employers may not need to rush to rewrite current employment contracts, if Parliament passes this legislation, businesses will need to consider how else to best protect their businesses as non-compete clauses become less effective.
Shoshana explains that employers may want to consider making greater use of agreements outside of the standard worker/employer contracts where the cap on non-compete clauses will not apply.