UK government to tighten rules on lengthy notice periods and non-compete clauses
Prime Minister Andy Burnham will announce a crackdown on long notice periods and non-compete clauses that restrict skilled workers in the UK labour market.
Prime Minister Andy Burnham is set to unveil a policy package that will curb excessively long notice periods and restrictive non-compete clauses in employment contracts. The initiative, announced in a Manchester speech alongside Business Secretary Jonathan Reyond and former Prime Minister Gordon Brown, seeks to free highly skilled workers from obligations that can require up to 18 months of garden leave. Tech and finance firms have complained that such clauses impede rapid hiring and stifle innovation, with start-ups such as Synthesia, Fuse Energy and Elevenlabs formally requesting government intervention.
Research by the pro-innovation lobby Enterprise Britain shows that 87% of scale-up leaders view non-competes as a major hiring obstacle and estimate a potential 10% rise in job creation if the rules are relaxed. While the plan aims to boost competition and wages, it could encounter pushback from established business organisations that argue the restrictions have little impact on innovation.
Why it matters
Easing restrictive contracts could unlock talent, boost hiring and accelerate growth in the UK tech and finance sectors.
How the sides frame it
HIGH AGREEMENTBoth camps report the same legislative package aimed at banning restrictive non-compete clauses and lengthy notice periods to promote innovation, with no substantive differences.
CENTER
Frames the new law as a step to stop ‘trap’ non-compete clauses that hinder workers and to boost UK innovation.
RIGHT
Frames the policy as a crackdown on overly long notice periods and restrictive non-competes to free skilled workers and spur innovation, highlighting business complaints and supportive statistics.
The right emphasises
- curb excessively long notice periods
- free highly skilled workers
- 87% of scale-up leaders see non-competes as a hiring obstacle
In this story
