Prime Minister Andy Burnham is expected to announce a crackdown on lengthy notice periods and non-compete clauses in employment contracts today. The move aims to free up the jobs market for highly skilled workers.
In a speech later today, Mr Burnham will outline plans to address strict employment conditions. These conditions can require staff to give up to 18 months' notice before leaving and prevent them from joining or establishing a competitor.
Non-compete clauses are prevalent in the tech and finance sectors, where employers are concerned about former staff using intellectual property. However, fast-growing tech companies have raised concerns about their inability to recruit talent at the necessary pace.
Last month, numerous fast-growing start-ups called on the government to intervene, describing the employment hurdles as "unfair" and widespread in the UK. A study by Enterprise Britain indicated that 87% of scale-up bosses identified non-compete clauses as a barrier to hiring plans.
The announcement is expected to take place in Manchester, with Business Secretary Jonathan Reynolds and former Prime Minister Gordon Brown also present. However, the Confederation of British Industry (CBI) has previously argued there is little evidence to suggest these conditions hinder innovation.