Burnham bans non-compete clauses to free up workers

The Prime Minister will legislate to stop companies using restrictive clauses that prevent workers joining rivals or starting their own firms.

Oct 9, 2026

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Burnham bans non-compete clauses to free up workers

The Prime Minister will legislate to stop companies using restrictive clauses that prevent workers joining rivals or starting their own firms.

In brief

The Prime Minister will legislate to stop companies using restrictive clauses that prevent workers joining rivals or starting their own firms. Andy Burnham announced legislation to ban non-compete clauses that prevent workers from joining rival firms or starting their own, saying the practice traps workers and stuns…

Burnham targets restrictive work clauses

Andy Burnham announced new legislation to prevent non-compete clauses that stop workers joining rival organisations or setting up their own firms after leaving their role.

The Prime Minister's complaint

Burnham said some businesses have gone too far with restrictive practices. Workers are often held back unpaid during sideline periods, which he said stuns innovation and traps workers.

“I believe some businesses have gone too far in their use of restrictive practices such as non-compete clauses”

The Bosman ruling comparison

The Bosman ruling comparison

Speaking from the Innovation Nation Summit in Manchester on Friday, Burnham described the planned legislation as the Bosman ruling for the innovation sector, referencing the European Court of Justice case that freed footballers to move…

“Call it, if you like, the Bosman ruling for the innovation sector”

Protection for foundational economy workers

Burnham said the legislation will ensure workers in the foundational economy and everyday economy are also not prevented from moving jobs, extending protections beyond start-ups and scaling firms.

Broader innovation ambitions

Burnham set out three measures to make the UK an innovation nation: devolving innovation funding, identifying world-leading clusters around the UK, and pressing for more cluster collaboration.

Scientific breakthroughs within a decade

The Prime Minister set an ambition for the UK to make a major scientific breakthrough within the next decade, highlighting tackling cancer, dementia and nuclear fusion as potential areas for achievement.

“We can do it, and we can be the nation in the next 10 years that… does find the cure for cancer, that does make the breakthrough on dementia, or indeed on nuclear fusion.”

What to remember

Andy Burnham announced legislation to ban non-compete clauses that prevent workers from joining rival firms or starting their own, saying the practice traps workers and stuns innovation.

Read the original on The Independent

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