{
  "id": 14371318,
  "title": "Banning non-competes is a hollow victory — firms will just ramp up gardening leave",
  "url": "https://urgent.news/2026/10/14/banning-non-competes-is-a-hollow-victory-firms-will-just-ramp-up",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-14T05:00:00.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/banning-non-competes-is-a-hollow-victory-firms-will-just-ramp-up-gardening-leave/"
  },
  "original_language": "en",
  "account": "In a move that has stirred controversy within the financial sector, the government plans to tighten non-compete clauses in employment contracts, a change that has raised concerns among business leaders. Despite facing criticism from the City over further amendments to employment laws, City lawyers have already anticipated the government's approach, according to Maria Ward-Brennan in her article for City AM.\n\nAndy Burnham, speaking at the Innovation Nation Summit, announced legislation to address excessively long notice periods and non-compete clauses in employment contracts, stating that some clauses have \"gone too far\" in an effort to create a more accessible job market for skilled professionals. While some employees might welcome these changes, as restrictions can hinder career progression, the business community has not embraced the government's proposal.\n\nMark Callaghan, a senior associate at Littler, explained that many employers view non-compete provisions as essential to safeguarding key personnel and their knowledge, relationships, and business strategies. David Palmer, a partner at Addleshaw Goddard, added that there are already robust safeguards in place to thwart unreasonable non-compete clauses, with a rich body of legal precedent limiting their application.\n\nHowever, Burnham's intentions did not emerge out of the blue. Last year, the Department for Business and Trade (DBT) initiated a consultation on restricting non-compete clauses within employment contracts, with feedback due in February. This prompted lawyers like Palmer to prepare ahead of time for their clients, exploring alternatives in case the government moved forward with the proposal, which it did.\n\nPalmer anticipates that businesses will likely replace non-competes with alternative restrictions, such as the increased use of \"gardening leave\" clauses. Garden leave allows an employee to remain on the company's payroll during their notice period but prohibits them from engaging in workplace activities. In the past, Google DeepMind extended gardening leave from six months to 12 months for departing UK-based employees working on sensitive projects like Gemini.\n\nWhile the government may consider limiting long notice periods to address the issue, Palmer remains skeptical that such measures would effectively eliminate all avenues for employers to deter staff movements to competitors. Moreover, long notice periods often benefit employees financially, as they receive extended paychecks.\n\nIn addition to non-compete clause restrictions, the government may also seek to maintain employee loyalty by implementing financial incentives to keep staff tied to their current employers. Businesses are already navigating the most significant overhaul of workers' rights in a generation, with further provisions of the Employment Rights Act set to be introduced next January. City employment lawyers, known for their high workload, have been advising firms on these changes, including potential alternatives to non-compete clauses.",
  "summary": "The Prime Minister revealed last Friday that the government will curb non-compete clauses in employment contracts, a move that has raised some eyebrows in the City. But despite business pushback over yet another overhaul of employment laws, City lawyers have already been 10 steps ahead with alternatives, Maria Ward-Brennan writes. Andy Burnham, in his speech [...]",
  "key_points": [
    "Government plans to tighten non-compete clauses in employment contracts.",
    "Business leaders concerned about alternative restrictions like gardening leave.",
    "Mark Callaghan predicts employers will use gardening leave to deter staff movements."
  ],
  "editors_take": "Legislative restrictions on non-compete clauses will likely trigger a shift toward gardening leave as firms seek alternative legal mechanisms to protect their intellectual property and key personnel.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}