Burnham promises to curb non-compete rules in job contracts

UK Prime Minister Andy Burnham has pledged to curtail non-compete clauses in employment contracts, calling their use "a drag on innovation" and saying restrictions should apply across the economy, not just high-paying roles.

Burnham made the announcement at a business summit in Manchester. He said the clauses had "gone too far," preventing workers from joining competitors or starting their own firms after leaving a job, and forcing some workers to go unpaid during restricted periods. He referenced the 1995 Bosman football ruling that transformed player transfers, saying he hoped curbs on non-competes could become "the Bosman ruling for the innovation sector."

Research cited by the government estimates around 5 million UK jobs are covered by non-compete clauses, which typically last about six months. The clauses are common in financial services and technology but appear across many sectors.

Burnham did not specify the exact scope of planned restrictions. The government has explored options including a total ban, restrictions above certain salary thresholds, or limits on duration. Details are expected to be announced alongside the Budget on 28 October, according to reporting by Politico and The Financial Times.

The Recruitment and Employment Confederation pushed back against the plan, warning that "sweeping" changes could damage protections for commercially sensitive information and client relationships. The previous Conservative government had rejected a total ban, citing concerns that it could reduce investor confidence or prompt companies to tighten internal information sharing.

Burnham framed the non-compete announcement as part of a broader push to retain high-growth companies in the UK. He told the summit that too many British companies had moved abroad seeking investment, and signaled the government would explore tax changes to keep scaling firms at home. He also indicated plans to extend regional investment funds modeled on Greater Manchester's Good Growth Fund, which he launched during his time as mayor of that region.