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Burnham to Clamp Down on 'Unfair' Non-Compete Clauses
The proposal would let start-ups hire more easily and allow workers to change jobs, as Burnham says restrictive clauses are stifling innovation.
The Prime Minister Andy Burnham announced legislation to limit non-compete clauses for start-ups at the Innovation Nation Summit in Manchester on Friday, removing barriers to hiring for promising firms.
Burnham claimed some companies have gone "too far" with restrictive practices, trapping workers and preventing them from joining rivals or starting their own ventures, which he said stunts innovation.
Describing the move as the "Bosman ruling for the innovation sector," The Prime Minister aims to "boost Britain's fastest growing firms" by removing barriers that prevent worker dynamism.
The legislation protects start-ups and scaling firms while ensuring employees in the foundational economy are also shielded from non-compete barriers, Burnham confirmed.
Beyond this ban, Burnham announced plans to devolve innovation funding and identify UK clusters with world-leading potential, measures he said could help Britain "punch above its weight.