Burnham says government will legislate against non-compete clauses that block hiring
Prime Minister Andy Burnham announced at an Innovation Nation Summit in Manchester that the government will legislate so non-compete clauses no longer stop start-ups and scaling firms hiring. City A.M. also reported a planned crackdown on long notice periods.
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The story, neutrally told
Centre · 1Prime Minister Andy Burnham said on Friday 9 October that the government will legislate so that non-compete clauses are no longer a barrier to hiring for start-ups and scaling firms. Evening StandardN “So I can confirm today we will legislate to make sure that non-compete clauses will no longer be a barrier to hiring for our most promising start-ups and scaling firms.” Read at Evening Standard ↗ Centre · 1He spoke at the Innovation Nation Summit in Manchester, calling the change "the Bosman ruling for the innovation sector" and saying it was "needed and long overdue". Evening StandardN “Speaking from the Innovation Nation Summit in Manchester on Friday, he described it as the “Bosman ruling for the innovation sector”.” Read at Evening Standard ↗ Centre · 1Burnham said some businesses have gone "too far" in using restrictive practices, that workers are held back and unpaid while sitting out on the sidelines, and that the clauses stunt innovation. Evening StandardN “I believe some businesses have gone too far in their use of restrictive practices such as non-compete clauses” Read at Evening Standard ↗
Centre · 1He added that workers in the "foundational economy, the everyday economy" would also not be prevented from moving jobs. Evening StandardN “workers in the foundational economy, the everyday economy, are not prevented from moving jobs too.” Read at Evening Standard ↗ Right · 1Before the announcement, City A.M. reported, citing the Financial Times, that Burnham would also target lengthy notice periods, which it said can run to 18 months, and that he would speak in Manchester alongside the business secretary and former Prime Minister Gordon Brown. City A.M.RC “force staff to give as much as 18 months notice before leaving and prevent them from joining or setting up a competitor.”“according to the Financial Times, which first reported the news.” Read at City A.M. ↗ Right · 1City A.M. said non-compete clauses are common in tech and finance, where employers fear former staff using intellectual property for a rival. City A.M.RC “Non-compete clauses have become particularly common in the highly competitive tech and finance sectors” Read at City A.M. ↗
Right · 1Last month dozens of fast-growing start-ups, including Synthesia, Fuse Energy and Elevenlabs, wrote to Burnham and the business secretary calling the terms "unfair" and saying they lower wages, reduce competition and undermine innovation. City A.M.RC “These terms lower wages, reduce competition and undermine the innovation that drives economic growth,”” Read at City A.M. ↗ Right · 1A study by the lobby group Enterprise Britain found 87 per cent of scale-up bosses listed non-compete clauses as a barrier to hiring, and three quarters said they could create at least 10 per cent more jobs if barriers were removed. City A.M.RC “Some 87 per cent of scale-up bosses listed non-compete clauses as a barrier to hiring plans” Read at City A.M. ↗ Right · 1City A.M. said the move may provoke a backlash from established businesses, noting the CBI has argued there is little evidence the conditions weigh on innovation. City A.M.RC “The CBI has previously argued that there is little evidence to suggest the conditions weigh on innovation.” Read at City A.M. ↗
Centre · 1Earlier in the speech Burnham set out three measures to make the UK an "innovation nation": devolving innovation funding, identifying clusters with world-leading potential, and pressing for more collaboration between clusters. Evening StandardN “He announced three measures, including devolving funding for innovation, identifying the clusters around the UK with the potential to become truly world-leading” Read at Evening Standard ↗
Every sentence links to the reporting it rests on. The pill in front of each says where its sources sit: Left, Centre or Right when one side supplies at least half of them, Mixed when they are evenly split. The number is how many outlets it cites.
Left0 outlets
No left outlet in our sources has covered this story yet.
Centre1 outlet
- Framing
- Reports the speech after delivery, led by Burnham's quotes and the 'Bosman ruling' comparison.
- Emphasis
- Burnham's own words, the legislative pledge, protection for everyday workers and the wider innovation plan.
- Leaves out or plays down
- Notice periods, start-up lobbying and CBI scepticism.
- Charged language
- “trap”
- For example
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“Non-compete clauses which create barriers for start-up firms looking to hire will be prevented under new legislation” — Evening Standard
Right1 outlet
- Framing
- Pre-speech preview presenting the crackdown as freeing the jobs market for skilled workers, backed by start-up and lobby-group evidence.
- Emphasis
- Business impact: start-up complaints, Enterprise Britain figures, US comparison and possible CBI backlash.
- Leaves out or plays down
- Burnham's own quotes and the wider innovation measures, as written before the speech.
- Charged language
- “blight”“unfair”“crackdown”
- For example
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“the strict legal hurdles have also been a blight for fast-growing tech companies” — City A.M.
What every side reports
- Burnham, as Prime Minister, announced action on non-compete clauses in a Manchester speech on 9 October.
- The aim is to boost innovation and make hiring easier for start-ups and scaling firms.
Where accounts differ
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Scope of the measure
- Centre
- The Evening Standard quotes Burnham on legislating against non-compete clauses and protecting everyday workers; it does not mention notice periods.
- Right
- City A.M. says the crackdown covers both non-competes and notice periods of up to 18 months, based on pre-speech reporting.
Andy Burnham person
Says some firms have gone too far with non-competes, which stunt innovation and trap workers, and commits to legislate while protecting everyday workers' mobility.
“So I can confirm today we will legislate to make sure that non-compete clauses will no longer be a barrier to hiring for our most promising start-ups and scaling firms.” — Evening Standard
Non-compete clauses topic
Described as common in tech and finance and as a barrier to hiring that start-ups say lowers wages and competition; the CBI doubts the evidence of harm to innovation.
“The CBI has previously argued that there is little evidence to suggest the conditions weigh on innovation.” — City A.M.
Left0 articles
No coverage yet.
Centre1 article
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Non-compete clauses which ‘trap’ workers to be prevented under new law – Burnham
Neutral Straight report of Burnham's speech and pledge, built around his quotes.
Right1 article
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Burnham to clamp down on ‘unfair’ non-compete clauses
Mixed Business-focused preview that largely adopts the start-ups' case while flagging likely CBI pushback.
- 9 Oct 09:18 First City A.M.RC Burnham to clamp down on ‘unfair’ non-compete clauses
- 9 Oct 11:10 +1h 52m Evening StandardN Non-compete clauses which ‘trap’ workers to be prevented under new law – Burnham
Times are when each article was published, or when we first saw it if the outlet gave no time.