UK to ban non‑compete clauses for start‑ups, says Burnham
Burnham said the new law will remove restrictive non‑compete clauses that trap workers and hinder UK innovation.
By Felo News Desk · Published
Prime Minister Andy Burnham announced at the Innovation Nation Summit in Manchester that new legislation will prohibit non‑compete clauses that block hiring for start‑up and scaling firms, describing the change as a "Bosman ruling for the innovation sector".
What happened
Speaking on Friday at the summit, Burnburn said the government will introduce a law to ensure non‑compete clauses can no longer be used as a barrier to hiring for the most promising start‑ups and scaling companies. He explained that such clauses prevent workers from joining rival firms or starting their own businesses after leaving a role, and that they often leave employees unpaid while they sit out.
What the reports add
Both Standard and Independent reported the same statements from Burnham, noting his description of the measure as the "Bosman ruling for the innovation sector" and his claim that many businesses have gone "too far" with restrictive practices. No other outlets provided additional details or differing figures.
What was said
Burnham told the audience, "I believe some businesses have gone too far in their use of restrictive practices such as non‑compete clauses, a view I know shared by many in this room and across the sector." He added, "Non‑compete clauses stop workers from joining a rival organisation, or indeed, setting up one of their own after they have left their role, and I think that’s a drag on innovation and prevents the best really being energised and bringing that dynamism to the economy." He concluded, "So I can confirm today we will legislate to make sure that non‑compete clauses will no longer be a barrier to hiring for our most promising start‑ups and scaling firms. Call it, if you like, the Bosman ruling." (Standard; Independent)
How it came about
The announcement follows growing criticism from the tech and start‑up community that non‑compete clauses limit talent mobility. Felo previously covered Burnham’s appeal to working‑class voters after his Liverpool conference speech, noting his focus on relatable messaging (Labour voters praise Burnham’s relatable conference speech). The new legislation builds on that narrative by targeting a specific barrier to innovation.
Key facts
- Prime Minister Andy Burnham announced legislation to ban non‑compete clauses for start‑ups and scaling firms. (standard.co.uk)
- Burnham described the change as the "Bosman ruling for the innovation sector". (standard.co.uk)
- The announcement was made at the Innovation Nation Summit in Manchester on Friday. (standard.co.uk)
Sources
- [1] standard.co.uk
- [2] independent.co.uk
