Burnham promises to curb non-compete rules in job contracts
The prime minister says restrictions on what workers can do after leaving roles have "gone too far".
By BBC News
Prime Minister Andy Burnham has pledged to restrict the use of non-compete clauses in employment contracts, saying some businesses have gone too far.
Speaking at a business summit in Manchester, Mr Burnham said the restrictions could prevent workers from joining rival companies or setting up businesses of their own after leaving a job.
He said non-compete clauses had also forced some workers to go without pay after leaving roles and made it harder for growing companies to recruit staff.
The prime minister said the government would introduce legislation so the clauses were no longer a barrier to hiring for promising start-ups and scaling firms.
He also said the changes would apply to workers in the “everyday economy”, who should not be prevented from moving jobs.
The government has been considering several options, including a total ban, restrictions above a salary threshold or limits on how long non-compete clauses can remain in force.
Mr Burnham did not set out the final scope of the proposed legislation. Details are expected to be published alongside the Budget on 28 October.
Non-compete clauses are designed to stop workers joining competitors or establishing rival businesses after leaving their jobs. The previous Conservative government rejected a total ban after employers warned it could affect investor confidence and lead companies to tighten internal rules on sharing information.