UK to legislate limits on non-compete clauses, Burnham says
- Prime Minister Andy Burnham announced plans on Oct. 9 to limit non-competes.
- U.K. law sets no statutory limit on how long a non-compete can last.
- A May 2023 plan for a three-month cap was never implemented.
- The Oct. 28 Budget may give more detail on the changes.
LONDON, UNITED KINGDOM — The U.K. government plans to bring forward legislation limiting non-compete clauses in employment contracts, after Prime Minister Andy Burnham said some businesses have gone too far in using them. Burnham gave no details of the changes, leaving employers to guess whether a cap, a salary threshold or an outright ban is coming.
What the government announced
In a speech on Oct. 9, Burnham said “some businesses have gone too far in their use of restrictive practices such as non-compete clauses,” according to an analysis by law firm Lewis Silkin. The government wants to tackle concerns that non-competes and related obligations are a barrier to hiring for start-ups.
The announcement follows a letter from founders of several tech start-ups arguing that non-competes, long notice periods and enforced garden leave were “undermin[ing] the innovation that drives economic growth.” Burnham’s announcement suggests the government also intends to tackle restrictive practices beyond non-competes.
No limit today
U.K. law sets no statutory limit on how long a non-compete can last, no salary threshold for their use and no requirement to pay employees during the restricted period. Reform has been discussed for years: a Conservative government consulted in December 2020 and committed in May 2023 to a three-month cap, which was not implemented before the July 2024 general election.
In November 2025, former Prime Minister Keir Starmer’s government published a working paper inviting views on options for reform.
What could change
Options considered before include an outright ban, a salary threshold, a cap on duration, mandatory compensation and limits that vary by employer size. Any change will need primary legislation, and the Chancellor’s Budget on Oct. 28 may give more detail.
Lewis Silkin said its research shows employers broadly oppose an outright ban. It advises businesses to keep non-competes where appropriate for now, while reviewing garden leave, notice periods and other covenants such as non-solicitation and non-dealing clauses.
For employers hiring in the U.K., tighter limits would let more staff move freely between rivals. Firms that use recruitment process outsourcing (RPO) or a staffing agency to fill roles could see a larger pool of candidates, and can compare hiring partners on the top BPO companies worldwide list.
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Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
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