Consultancies vulnerable as government plots non-compete axe

Government proposals to scrap non-compete clauses may have significant implications for the wider professional services sector. In the Budget, John Healey confirmed that the government is introducing legislation to reform non-compete clauses in employment contracts across the economy, in a bid to lubricate the labour marker for startups and scaling firms. The government will publish the details of the legislation early next year. Ministers have said it will focus on workers , meaning equity partners are unlikely to be part of this overhaul. But for the professional services sector, high-ranking senior associates and some salaried partners whose relationship with their firm will typically be governed by an employment contract could be caught in the changes, explained Pooja Dasgupta, senior associate, Farrer Co. The professional services sector relies heavily on senior individuals with strong client connections. Abigail Fisher, chief people officer at Grant Thornton UK,