Burnham to Curb Non-Compete Clauses Covering Five Million Jobs
Non-compete clauses “have gone too far”, Andy Burnham told a summit in Manchester, promising detail alongside the Budget on 28 October. Around five million jobs in Britain carry one, typically running six months after an employee leaves. He said he hoped it would prove “the Bosman ruling for the innovation sector”.
The Bosman comparison is doing real work. That 1995 judgment let footballers leave at the end of a contract without a transfer fee, and it moved bargaining power to the player permanently. Mr Burnham is arguing that a clause originally meant to protect trade secrets has spread until it binds people who hold none, and that the cost is paid in innovation: “I think that’s a drag on innovation.” He did not specify the scope beyond saying it would cover the “everyday economy” as well as start-ups and scaling firms. Three options have been under examination since late last year: an outright ban, a ban above a salary threshold, or a limit on duration. The previous government looked at the same question and ruled out a total ban. The Recruitment and Employment Confederation has warned against “sweeping” changes, arguing the clauses play a “vital role” in protecting commercially sensitive information and client relationships. Two things are worth holding until 28 October. The first is that a clause only bites if an employer is willing to enforce it, and most are not, so the practical gain depends entirely on where the line is drawn. The second is a sourcing point: this pledge rests on a single approved outlet’s account of the speech, and the government’s own release covering the same event makes no mention of non-compete clauses at all.