Fade-in background and text slide

ANIMATION EXAMPLES

This .group contains a hero .card. When scrolled into view it has a subtle animation to fade-up the background image and the text slides in. We JS to initiate a scroll-spy, then the animation is triggered using the following attribute on the .group uk-scrollspy="target: .card__text; cls: uk-animation-fade; delay: 500"

Gentle text fade

Our survey results suggest that the Government's proposals are not well targeted in achieving their underlying objectives – namely boosting innovation and promoting flexibility within the labour market to support the UK's economic recovery from the impact of COVID-19. This consultation is highly relevant to our employer clients: 90% of the respondents to our survey use, or have used, non-competes in their contracts of employment.

As practitioners, we consider that the Government's premise for this consultation only addresses one perspective: that of the entrepreneur setting up a new business.

Encouraging innovation is important, but without restrictive covenants, how can those entrepreneurs protect what they have created when they themselves become employers? In many industries, restrictive covenants are an essential tool for the preservation of a business' commercial viability. Less than five years ago, the Government had concluded no action was necessary on restrictive covenants following a 2016 Call for Evidence. At the time the Government concluded that restrictive covenants were a "valuable and necessary tool" and "do not unfairly impact on an individual’s ability to find other work.” We have seen no evidence that the pandemic has changed this, and our clients agree.

Contact us for more information.

enter
exit
cover
contain

At the end of last year, the Government launched a consultation on reforms to non-compete clauses in contracts of employment. We surveyed our employer clients across a wide range of sectors for their views on the 37 consultation questions, and were overwhelmed with the volume of considered responses we received.

Mishcon de Reya sat on the Employment Lawyers' Association's (ELA) working party responding to the consultation earlier this year, and our clients' responses formed part of ELA's comprehensive response (here). The Government has not said when it will publish its report on the consultation. In the meantime, we summarise the results of our survey.

To coincide with the launch of the survey, we have also produced a podcast discussing recent developments on restrictive covenants as part of our Mishcon Academy: Digital Sessions series.

Our clients consider that:

  • The Government's proposals will not achieve their desired objective of promoting innovation.
  • Banning non-competes would make hiring new talent easier. However, concern about the inability to protect business interests from unfair competition far outweighed any such advantages.
  • There is no appetite for significant reform.

Non-competes remain a valuable and necessary tool, which in general do not unfairly impact on an individual’s ability to find other work.

We believe that such restrictions are better placed in a shareholders' agreement to give them added weight. We would consider - possibly – setting them to one side and not including them in an employment contract, but appreciate this is a bold step.
— Jeremy Keith, Mental models

A reminder of the law today

NEXT SECTION

In the employment context, restrictive covenants are contractual provisions designed to prevent employees from competing with their former employer for a limited period after they leave.