UK prime minister Andy Burnham said on Friday the Labour government will limit non-compete clauses in employment contracts to reduce waiting periods before employees can change jobs or found companies. The move, framed as new hiring legislation, responds to long-standing complaints from tech and AI startups that restrictive covenants impede recruitment and innovation. Burnham said some firms have gone too far with such practices, which he said constrain talent and economic dynamism.

2026-10-09

UK prime minister Andy Burnham said on Friday the Labour government will limit non-compete clauses in employment contracts to reduce waiting periods before employees can change jobs or found companies. The move, framed as new hiring legislation, responds to long-standing complaints from tech and AI startups that restrictive covenants impede recruitment and innovation. Burnham said some firms have gone too far with such practices, which he said constrain talent and economic dynamism.