Employment Law Guide 2026: Other things to look out for

Reform of non-compete clauses

In November 2025, the Government issued a policy paper seeking views on options for reforming non-compete clauses in employment contracts. Options being considered include introducing a statutory limit on duration, an outright ban, a ban below a salary threshold or combining this with a statutory limit on duration. The Government is not considering requiring employers to pay compensation for the duration of the non-compete. Responses are required by 18 February 2026. The Government also seeks views on whether restrictions should extend to other restrictive covenants and whether they should apply beyond employment contracts to other workplace contracts. It is not clear when any changes the Government may decide on might be brought it in.

Parental leave and pay review

In July 2025, the Government launched a full review of the parental leave and pay system which will cover all types of parental leave and pay, including maternity, paternity, adoption and shared parental leave and pay. The review is expected to run for 18 months and the Government will then set out a roadmap for implementing reforms. Changes resulting from this review are not therefore expected for a number of years.

Carer’s leave review

In November 2025, the Government launched a review of the effectiveness of carer’s leave which aims to understand how well the existing unpaid carer’s leave entitlement is working, examine options for different models of paid carer’s leave and consider extensions to the current unpaid entitlement. There will be further consultations and a final report is expected in autumn/winter 2026.

Right to switch off

The Government plans to introduce the right to disconnect, or "switch off", through a new statutory Code of Practice. On 13 November 2025, following its inquiry into the effects and future development of remote and hybrid working in the UK, the House of Lords Committee on Home-based Working recommended that the Code of Practice be framed in terms of whether employees need to respond outside of their agreed working hours, rather than whether employers should contact them. It also recommended that the Government should consider possible exceptions to the right to switch off, such as for urgent communications or where there is a business need to collaborate across time zones.

Further consultations

To meet the Government's manifesto commitments, further consultations are expected, including on:

• Employment status
• Workplace support for parents of critically ill children and workplace support for unpaid carers, including kinship carers
• AI in the workplace
• Workplace temperatures
• TUPE reform