LONDON — British Prime Minister Andy Burnham confirmed Friday he will legislate to ease restrictive non-compete clause rules for workers — but stopped short of committing to a ban.
Burnham said in a speech in Manchester that he wants to “make sure that non-compete clauses will no longer be a barrier to hiring for our most promising start-ups and scaling firms” — but did has yet to set out the extent of the crackdown.
The scope of the new rules will come later, ahead of legislation. POLITICO first reported the planned crackdown Thursday.
The government’s action would be the “Bosman ruling for the innovation sector,” Burnham said at a government-backed innovation summit in Manchester. That’s a reference to a 1995 European Court of Justice decision that changed how star players are transferred between football clubs.
Potential changes to non-compete clauses in workers’ contracts began in 2025 under Burnham’s predecessor Keir Starmer. The proposals ranged from a total ban on non-compete clauses to a partial ban, such as allowing non-compete clauses only for workers earning more than a set salary threshold, or limiting their length.
The vow from Burnham comes after intense lobbying lobbying for and against the restrictions in workers’ contracts. U.K. tech start-ups claim the curbs are undermining economic growth, while City firms and trade bodies, including TheCityUK and the Managed Funds Association, are against any changes.
