Key facts
- Non-compete clauses will be legislated against to prevent them from being a barrier to hiring for start-ups.
- Prime Minister Andy Burnham described the clauses as a "trap" for workers and a drag on innovation.
- The move is intended to boost UK innovation and allow workers more freedom to move jobs or start businesses.
- Burnham compared the policy to the "Bosman ruling for the innovation sector".
- Plans include devolving innovation funding, identifying world-leading clusters, and fostering collaboration.
- The UK aims for a major scientific breakthrough in the next decade.
Prime Minister Andy Burnham has revealed plans to legislate against non-compete clauses, aiming to boost UK innovation and prevent workers from being "trapped" by restrictive employment practices. Burnham stated that some companies have excessively used these clauses, hindering employees from joining rival organizations or starting their own ventures.
Speaking at the Innovation Nation Summit in Manchester, Burnham described the impending legislation as the "Bosman ruling for the innovation sector," referencing the European Court of Justice case that allowed out-of-contract footballers to move freely between clubs. He emphasized that these clauses stunt innovation and that the government will ensure workers in the "foundational economy" are also not prevented from changing jobs.
Burnham also outlined broader plans to establish the UK as a world-leading "innovation nation." These include devolving innovation funding, identifying and nurturing potential world-leading clusters across the UK, and promoting greater collaboration. He expressed an ambition for the UK to achieve a significant scientific breakthrough within the next decade, citing potential advancements in cancer, dementia, and nuclear fusion.