Competition and Markets Authority publishes response on reform options for non-compete clauses
The Competition and Markets Authority (the CMA) has published a response to the UK Government's working paper on reforming non-compete clauses in employment contracts, focusing on improving labour market mobility and competition.
The CMA supports reform on the basis that restrictions on mobility may hinder innovation, scale-up growth and productivity. Non-competes are prevalent across sectors and income levels, with around 26% of workers believing they are subject to one.
The CMA endorses a ban on non-competes below a defined salary threshold and the imposition of a statutory maximum duration for non-competes above that threshold.
The CMA notes that employers can often protect legitimate interests through narrower tools such as non-disclosure agreements, claw-back provisions and paid notice periods including garden leave.
Government launches inquiry into Artificial Intelligence, business and the future of the workforce
The Government has launched an inquiry into artificial intelligence (AI) to examine the opportunities and costs for businesses and the workforce, and to make recommendations on government priorities.
The inquiry will examine a range of issues including how AI is likely to evolve, how it is being deployed across the UK economy, its impact on employment, productivity, job security, pay and wellbeing. It will also consider what skills and reskilling models are needed to support workers through the transition. The Committee will consider whether the existing regulatory framework in the UK is adequate.
Source: Artificial Intelligence, business and the future of the workforce - Committees - UK Parliament
Government publishes guidance on equality action plans
From April 2026, employers with 250 or more employees will have the option to produce and publish a voluntary action plan alongside their gender pay gap report. These will become mandatory from spring 2027, subject to secondary legislation under the Employment Rights Act 2025. Action plans will show steps an organisation is taking to reduce its gender pay gap and support employees experiencing menopause.
The Government has published guidance for employers which includes actions employers can take to:
- limit the impact of factors which influence the gender pay gap, and so supporting closing the gender pay gap and improving gender equality; and
- support employees experiencing menopause, which includes both perimenopause and post menopause.
Employers are encouraged to select more than the minimum two actions and to engage senior leaders, line managers and employees in the development and implementation of their plans.
Voluntary action plans will be submitted and published on the gender pay gap service, with deadlines of 30 March 2027 for most public authority employers and 4 April 2027 for private, voluntary and all other public authority employers. Further process guidance will be published in April 2026.
Significant changes have been introduced to UK entry rules with effect from 25 February 2026
- End of ETA transitional period – the transitional period for applying for an ETA (Electronic Travel Authorisation) prior to travel to the UK has ended. From 25 February anyone who does not hold a visa to enter the UK or does not fall into an exception will generally need to have been granted an ETA prior to travel or may not be able to start their journey. See our previous article 'Electronic Travel Authorisations' for more information.
- Changes to entry for dual nationals — citizens of both the UK and another country apply for an ETA. From today to enter the country, they will need to show either a British passport or a new digital version of the certificate of entitlement to attach to their second nationality passport. Passports can be applied for from outside the UK but can take several weeks to process.
For more updates on important visa changes including following the closure of the earned settlement consultation do listen to our recent webinar here.
