UK plans legislation to ease non-compete restrictions
The government has not detailed the scope of the changes, which could include a ban on clauses restricting workers from joining competitors.
UK prime minister Andy Burnham has confirmed plans for legislation to ease employment contract restrictions that limit workers’ ability to move to rival businesses. A ban on non-compete clauses is among the possibilities, but the government has not specified how far its changes would go.
At Manchester’s Innovation Nation Summit, Burnham said the legislation would prevent such clauses from obstructing recruitment by startups and growing firms. He argued that the restrictions hamper innovation. The government is seeking to encourage innovation and strengthen the economy.
The announcement follows efforts by technology startups, including ElevenLabs and Synthesia, to curb both non-compete provisions and lengthy notice periods. Non-compete clauses can prevent an employee from taking a job with a competitor or establishing a startup of their own.
The Startup Coalition, a trade body that has also campaigned for reform, welcomed the plans. Its chief executive, Dom Hallas, said greater freedom for workers to change jobs would help startups recruit and expand more quickly. He pointed to businesses founded by former employees of companies such as Revolut as examples of the role that staff mobility can play.
