UK to ban non-compete clauses in employment contracts

Summarised from 3 outlets · 5 reports · Updated 9 Oct, 11:55 · Archive

The UK government will legislate to prevent non-compete clauses that restrict workers from joining rival firms or starting competing businesses.

Prime Minister Andy Burnham announced on Friday that the UK government will legislate to prevent non-compete clauses in employment contracts. Speaking at the Innovation Nation Summit in Manchester, he said the government will ensure that such clauses are 'no longer a barrier to hiring for our most promising start-ups and scaling firms'.

Non-compete clauses restrict workers' ability to join rival organisations or set up competing businesses after leaving their jobs. Burnham said some companies have gone 'too far' in their use of these restrictive practices. Workers subject to such clauses are often unpaid during the period they must sit out, preventing them from working in their field.

The Prime Minister described the move as the 'Bosman ruling for the innovation sector', comparing it to the landmark sports ruling that allowed players freedom of movement. He stated that non-compete clauses stunt innovation and trap workers, preventing talented individuals from bringing dynamism to the economy.

According to Politico Europe, the previous government set out options in November 2025 to limit non-compete clauses, ranging from a total ban to partial restrictions such as allowing them only for higher-earning workers or limiting their length. Founders of more than twenty UK tech start-ups had written to the government saying such restrictions undermined innovation and economic growth.

Politico reports that government sources said ministers would set out a broad intention to prevent non-compete clauses but that finer details would be worked out further down the line in consultation with industry. Burnham added that the government would also ensure workers in the foundational and everyday economy are not prevented from moving jobs.

How it is being reported

• Non-compete clauses which ‘trap’ workers to be prevented under new law – BurnhamThe PM had earlier set out plans to make the UK a world-leading ‘innovation nation’.Independent Business · 9 Oct, 11:35
• Non-compete clauses which ‘trap’ workers to be prevented under new law – BurnhamThe PM had earlier set out plans to make the UK a world-leading ‘innovation nation’.Evening Standard · 9 Oct, 11:35
• Non-compete clauses which ‘trap’ workers to be prevented under new law – BurnhamThe PM had earlier set out plans to make the UK a world-leading ‘innovation nation’.Independent Business · 9 Oct, 11:10
• Non-compete clauses which ‘trap’ workers to be prevented under new law – BurnhamThe PM had earlier set out plans to make the UK a world-leading ‘innovation nation’.Evening Standard · 9 Oct, 11:10
• UK plans to announce ban on workers’ non-compete clauses in push for growthThe government believes the clauses, common in tech and financial firms, undermine innovation.Politico Europe · 8 Oct, 18:34

In this story: Andy Burnham · UK government · Manchester

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem