Burnham promises to curb non-compete rules in job contracts
Summary
Prime Minister Andy Burnham said the government will limit the use of non-compete clauses in job contracts because they stop workers from easily changing jobs or starting new businesses. These changes aim to help UK companies grow, keep innovative firms in the country, and encourage investment in the economy.Key Facts
- Non-compete clauses stop workers from joining rival companies or starting similar businesses after leaving a job.
- About 5 million jobs in the UK are affected by these clauses, which usually last around six months.
- Burnham said these rules are hurting innovation and making it harder for companies to hire new staff.
- The government plans new laws to reduce the impact of non-compete clauses, with details expected in the October 28 Budget.
- Possible changes include bans or limits on these clauses for everyday jobs, not just high-paid sectors like finance or tech.
- The previous Conservative government rejected a total ban due to worries about investor confidence and company information sharing.
- Burnham also mentioned plans to improve tax policies and public investment to keep growing companies and jobs in the UK.
- He wants all UK regions to have funds to support startups, similar to the Greater Manchester Good Growth Fund.
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