The UK Government has published a new working paper on the reform of non-compete clauses in employment contracts and is seeking views from employers, workers and industry stakeholders ahead of potential legislative change.

FIS is encouraging members across the finishes and interiors sector to engage with this consultation to ensure that the practical realities faced by specialist contractors and their workforce are properly represented, including those operating across Scotland and the wider UK.

What are non-compete clauses?

Non-compete clauses are contractual terms that restrict an individual’s ability to work for, or establish, a competing business after leaving an employer. While such clauses are only enforceable if deemed “reasonable” by a court, there are currently few constraints on their inclusion in employment contracts, regardless of enforceability.

Research by the London School of Economics suggests that around 26% of workers are subject to non-compete clauses, raising questions about labour mobility, skills development and business growth.

What changes are being considered?

As part of its wider growth agenda, the Government is seeking views on several possible policy options, including:

• Introducing statutory limits on the length of non-compete clauses
• Banning non-compete clauses in employment contracts altogether
• Banning non-compete clauses below a certain salary threshold
• A combined approach, banning clauses below a salary threshold while limiting their duration above it

The Government is particularly interested in understanding how reform could support innovation, competition and workforce flexibility, while balancing legitimate business interests such as protecting confidential information and client relationships.

Why this matters for FIS members

For employers in the finishes and interiors sector, non-compete clauses can affect:

• Recruitment and retention in a highly mobile, skills-short market
• Investment in training and upskilling
• Fair competition and the movement of specialist expertise
• Business confidence when senior or technically skilled staff move on

FIS believes it is essential that any reform reflects the realities of SME-dominated supply chains, where skills, trust and continuity are critical to delivering safe, compliant and high-quality work.

How to respond

Members can respond to the working paper either:

• Online, via the Government consultation portal
• Or by email to: noncompeteclauses@businessandtrade.gov.uk

Deadline for responses: 18 February 2026

Further information

The full working paper and consultation questions are available here:

Working paper on options for reform of non-compete clauses in employment contracts – GOV.UK

FIS will continue to monitor this policy development and feed sector views into Government where appropriate. Members with specific concerns or examples they wish to share are encouraged to contact the FIS team.

Why: To address concerns raised through Collaborative Reporting for Safer Structures UK (CROSS-UK), FIS has developed guidance to highlight compartmentation requirements when specifying raised access floors (RAF).

What: Guidance recognises that fire resistance testing is typically carried out under standardised conditions to assess the performance of building components when exposed to fire. For passive fire protection systems such as glazed fire screens and door sets, these tests are generally conducted with specimens fixed at the base to concrete linings or block. The test relies on a stable, non-combustible substrate that performs predictably under fire exposure as a base, creating limitations when applied to scenarios where the screen or doorset sits on a raised access floor. The guidance also explores sequencing and when to maintain the integrity of a drywall system that interrupts the raised access flooring.

The inability to identify and mitigate risk at the appropriate stage of design, could present a challenge in getting approval through building control and in extreme cases could compromise safety.

Who: This guidance is targeted at specifiers, designers and contractors.

FIS has submitted a response to the government’s consultation on the rise in NEET (Not in Education, Employment, or Training) among young people. Drawing on sector evidence, FIS highlighted structural barriers limiting youth participation, including the decline in entry-level apprenticeships, limited capacity among SMEs, weak links between schools and industry, and young people’s lack of work experience. Data from gov.uk show that apprenticeship starts for under-19s in key trades have fallen sharply since 2017, while SMEs face challenges in taking on apprentices due to volatile workloads, low returns, and administrative burdens.

FIS’s response calls for a rebalancing of the skills system towards Level 2 and 3 apprenticeships, stronger SME support, and employer-led training frameworks that align education with real job roles. It also stresses the need for robust careers advice, a review of the proportionality of on-site supervision for under-18s in line with health and safety regulations and the additional cost burden for employers (e.g. in escorting young people to the toilet), and ongoing research into how supply chain practices affect skills development, productivity, and workforce wellbeing.

FIS concludes that these reforms are essential to expand opportunities, reduce NEET levels, address young people’s lack of experience, and tackle long-term skills shortages in the construction sector.

FIS continues to work closely with the International Powered Access Federation (IPAF) through a reciprocal agreement aimed at strengthening safety standards across the finishes and interiors sector. As part of this collaboration, both organisations are monitoring key risk areas and sharing guidance to support safer working practices.

One ongoing concern is the risk of crushing and entrapment incidents associated with Mobile Elevating Work Platforms (MEWPs). These risks are particularly prevalent when using scissor lifts and 3A-type machines, where operators may be working in close proximity to overhead structures or within restricted work envelopes.

Secondary guarding technology has emerged as a potential control measure to help reduce these risks. However, while recognising the possible safety benefits of these systems, IPAF has confirmed that it is not currently advocating the mandatory adoption of specific secondary guarding devices.

This position reflects the fact that an international draft ISO standard is still in development. IPAF advises that contractors should await the outcome of this process before implementing blanket requirements, ensuring that any future adoption is aligned with globally recognised best practice.

In the meantime, FIS encourages members to continue focusing on robust risk assessment, appropriate equipment selection, and operator training when planning work at height involving MEWPs.

Through our partnership with IPAF, FIS will continue to keep members informed as further guidance and standards emerge, helping businesses make informed decisions that prioritise both compliance and workforce safety.

Members with questions relating to MEWP safety or working at height can contact the FIS technical team for further support.

The EU Carbon Border Adjustment Mechanism (CBAM) came into effect on 1 January 2026. The aim of CBAM is to protect homegrown industries which are subject to decarbonisation policies from imports that are not. Its purpose is to prevent carbon leakage.

If you are exporting from the UK into the EU you will need to understand whether the EU CBAM is relevant and applicable to you.

The UK government has produced guidance for UK exporters into the EU: What do I need to know about selling to Europe

You can also find out more information on the EU legislation and guidance at : CBAM Legislation and Guidance – Taxation and Customs Union

Background

CBAM is effectively a new tax aimed at reducing carbon emissions. It will impact companies exporting products to the EU and specifying products made with aluminium, cement, iron and steel (it is likely to be extended to cover other products such as glass in the future).

CBAM imposes a carbon cost to ensure imports face a comparable carbon price to goods produced domestically. This mechanism is designed to prevent “carbon leakage,” where companies might relocate production to countries with less stringent emissions regulations.

Significant legislative changes are on the horizon for employers, following the Employment Rights Bill receiving Royal Assent on 18 December 2025. Now enacted as the Employment Rights Act, the legislation introduces wide-ranging reforms that will reshape employment practices over the next two years.

Alongside this, the Government has confirmed new measures to strengthen HMRC’s powers to tackle fraud within the Construction Industry Scheme (CIS), signalling increased scrutiny across the construction supply chain.

Preparing for the Employment Rights Act

The reforms broadly focus on three key areas:

• New rights and protections for workers
• Fair pay, terms, and working conditions
• Enforcement and trade union legislation

Some changes have already taken effect, particularly those aimed at modernising trade union laws, including provisions affecting strike action.

Further updates are scheduled in phases:

From April 2026

• Introduction of ‘day one’ rights to Statutory Sick Pay (SSP), paternity leave, and unpaid parental leave
• Removal of the Lower Earnings Limit for SSP, expanding eligibility

From January 2027

• Reduction of the qualifying period for unfair dismissal from two years to six months

These developments will require employers to review internal policies, employment contracts, and management processes to ensure compliance.

FIS partner Citation has updated its guidance to help employers understand the practical implications of the Act and identify the steps needed to prepare.

Tackling Fraud in the Construction Industry Scheme (CIS)

The Government has also announced tougher measures to combat tax fraud within the CIS framework.

From 6 April 2026, businesses that knew, or should reasonably have known, that payments were linked to fraudulent tax evasion risk:

• Immediate loss of Gross Payment Status
• Financial penalties of up to 30% of the lost tax

For businesses operating within the finishes and interiors sector, this reinforces the importance of robust financial controls, due diligence across the supply chain, and clear governance over payment practices.

What This Means for FIS Members

Together, these changes highlight a continued shift toward stronger regulatory oversight in employment and financial compliance. Early preparation will be essential to minimise disruption and protect business operations.

FIS encourages members to:

• Review employment policies and procedures
• Strengthen payroll and CIS compliance processes
• Seek professional advice where necessary
• Stay informed as further guidance emerges

We will continue to monitor developments and provide updates to support members in navigating these changes.