Burnham promises to curb non-compete rules in job contracts
The prime minister says restrictions on what workers can do after leaving roles have "gone too far".
Prime Minister Andy Burnham has pledged to limit the use of non-compete clauses in employment contracts, stating they have hindered innovation in UK companies. In a recent speech, he highlighted how these clauses can prevent workers from earning income after leaving a job and make it difficult for startups and growing firms to attract new talent.
Burnham, speaking at a business summit in Manchester, revealed that his government would pursue legislation to prevent non-compete clauses from becoming obstacles to hiring or starting new businesses. He likened his proposed restrictions to the 1995 Bosman ruling, which transformed the football transfer market in Europe. The details of the proposed restrictions have not been specified, but they are expected to encompass the entire economy and support promising start-ups and scaling firms.
The government plans to unveil these proposals alongside the Budget on October 28th. While the previous Conservative administration had dismissed a complete ban on non-compete clauses, citing potential negative impacts on investor confidence, Burnham framed the announcement as part of a broader strategy to bolster innovative sectors.
He emphasized that despite the UK's strong research base and start-ups, many firms have relocated abroad for investment. Burnham also hinted at further announcements on using public funds to attract private investment in the economy and the creation of dedicated funds for UK regions, drawing inspiration from the Good Growth Fund in Greater Manchester.
He stressed the need to retain high-growth companies by potentially adjusting the tax system, stating, "One of our biggest challenges is breaking through our own ceiling."
Written by urgent.news from BBC News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
