Burnham promises to curb non-compete rules in job contracts
UK Prime Minister Andy Burnham has announced plans to restrict the use of non-compete clauses in employment contracts to boost innovation and labor mobility. The government aims to prevent these clauses from acting as barriers to hiring and business growth.
Why it matters
Reforming non-compete laws could significantly impact the UK labor market, particularly in the technology and financial services sectors.
Image source, Getty Images By Paul Seddon Political reporter Published 42 minutes ago Andy Burnham has promised to curb companies' ability to restrict what their workers can do after leaving their job.
In a speech, the prime minister said the use of non-compete clauses in employment contracts had "gone too far" and was holding innovative UK companies back.
He added the clauses had forced workers to go without pay after leaving a role, as well as making it harder for growing firms to hire new staff.
Ahead of the Budget later this month, he also said there was "more to do" on tax to encourage promising firms to stay in the UK.
Sir Keir Starmer's government had been exploring possible restrictions on non-compete clauses since late last year, including a total ban, banning them above a certain salary threshold, or limiting how long they can last.
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