Understand
Andy Burnham promises to curb non-compete clauses in job contracts
Overview
Prime Minister Andy Burnham has announced plans to curb the use of non-compete clauses in employment contracts, stating that current practices stifle innovation, prevent workers from changing jobs or starting new firms, and hinder growing companies from hiring staff. Speaking at a business summit in Manchester, he indicated that further details and legislation will be unveiled alongside the Budget on 28 October.
Key points
- Andy Burnham stated that non-compete clauses have gone too far and act as a drag on UK innovation.
- Around 5 million jobs in Britain are estimated to be covered by non-compete clauses, typically lasting about six months.
- The government plans to introduce legislation to ensure these clauses are no longer a barrier to hiring new staff.
- Details of the proposed restrictions are expected to be announced alongside the Budget on 28 October.
- Burnham also hinted at potential changes to the tax system to encourage high-growth companies to stay and scale in the UK.