UK Prime Minister Andy Burnham announced plans to ban non-compete clauses in employment contracts. The decision was revealed at the Innovation Nation Summit held in Manchester.
The government aims to remove barriers for startups and scaling firms to foster innovation and economic growth. Burnham compared the legislative change to the Bosman ruling in sports.
The policy shift follows advocacy from tech companies like ElevenLabs and Synthesia. These firms pushed to limit non-compete provisions and extended notice periods in labor contracts.
The Startup Coalition, led by CEO Dom Hallas, has long campaigned for this reform. The organization argues that free-flowing talent is essential for building a competitive ecosystem.
Hallas noted that the UK is already seeing companies emerge from alumni of established firms like Revolut. He believes reducing hiring barriers will accelerate growth for British startups.
