Politics · United Kingdom · 2 days ago
Burnham says new law will curb job contract non-compete clauses
Andy Burnham says the government will bring in legislation to curb non-compete clauses in job contracts.
These clauses can stop people joining a rival business or starting their own after leaving a job, sometimes leaving them without pay while they wait.
Burnham says the restrictions can make it harder for start-ups and growing companies to hire, and can hold back innovation.
Government research cited in one report estimates that about five million jobs in Britain are covered by these clauses, which typically last around six months.
Burnham says the new rules should also protect workers in the everyday economy, but he has not yet specified how broad they will be.
Employers have warned that sweeping changes could weaken protections for sensitive business information and client relationships.
The government is expected to set out details alongside the Budget on 28 October.
Andy Burnham said the government would legislate to limit non-compete clauses in job contracts.
He said the clauses can stop workers joining rivals or starting businesses and make it harder for growing firms to hire.
Burnham argued the restrictions were holding back innovation and promised protections for workers in both start-ups and the everyday economy.
The Recruitment and Employment Confederation warned against sweeping changes, saying the clauses protect sensitive business information and client relationships.
The government is expected to set out details alongside the Budget on 28 October.
- Who
- Prime Minister Andy Burnham announced the plan. The Recruitment and Employment Confederation cautioned against sweeping changes.
- What
- The government will legislate to limit non-compete clauses that restrict workers after they leave a job.
- When
- Burnham announced the plan on 9 October 2026. The government is expected to publish details on 28 October.
- Where
- At a business summit in Manchester.
- Why
- Burnham said the clauses can hold back innovation and prevent firms from hiring workers. The government aims to help promising businesses grow in the UK.
UK government
Recruitment and Employment Confederation
Effect on hiring and innovation
UK government
The government says non-compete clauses can stop workers joining rivals or starting businesses and create barriers to hiring.
Recruitment and Employment Confederation
The Confederation warns that sweeping changes could weaken protections for commercially sensitive information and client relationships.
I think that’s a drag on innovation and prevents the best really being energised and bringing that dynamism to the economy.
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.
vital role
So I know there is more to do to fix that, specifically on tax, to encourage people to stay and scale.
The government had been exploring possible restrictions on non-compete clauses, including a total ban and limits based on salary or duration.
Burnham announced at a business summit in Manchester that the government would legislate to limit the clauses.
The government is expected to set out details of the proposed restrictions alongside the Budget.
- Announcement
- Government plans new legislation on non-compete clauses
- Expected details
- 28 October 2026
- Location
- Business summit in Manchester
- Estimated coverage
- Around 5 million jobs in Britain
- Typical duration
- Around six months
- Opposing view
- Recruitment and Employment Confederation warned against sweeping changes
Sources
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