London firms are already re‑engineering contracts as the UK government moves to curb non‑compete clauses, a shift that could reverberate across North‑American workplaces where similar debates are under way.
In 2025, the Department for Business and Trade launched a consultation on restricting non‑compete clauses in employment contracts. The consultation closed for feedback in February, leaving companies to anticipate possible reforms.
David Palmer, a partner at Addleshaw Goddard, told City AM that firms are engaging in "blue sky thinking" to retain staff. He suggested delaying bonus payments so employees stay longer, and using garden‑leave provisions to keep talent under contract while limiting competitive moves.
Some sectors have introduced share‑incentive plans that lock the date when employees can access company shares, effectively extending their tenure.
The broader overhaul of workers' rights includes changes to the Employment Rights Act. The qualifying service period for unfair‑dismissal claims has been cut from two years to six months, prompting employers to shorten probation periods to exit staff before they acquire full rights.
Another upcoming change removes the compensation cap for unfair dismissal, which was previously set at £123,543 or one year's salary. Lawyers report that senior executives have accelerated redundancies to avoid higher costs once the cap is lifted.
Canadian employers are watching these developments closely, as several provinces have already limited non‑compete use, and any UK precedent may influence future policy discussions across the border.