Definition
A contractual provision that prevents a former employee from working for a competing business or setting up a competing enterprise for a specified period after leaving employment.
UK Context
Non-compete clauses in the UK are governed by common law principles of restraint of trade. The Government's 2020 consultation on limiting non-competes to three months with mandatory compensation has not yet resulted in legislation. UK courts will not rewrite an unreasonable non-compete to make it enforceable, unlike some US states that apply a blue-pencil doctrine. The burden of proving reasonableness rests entirely on the employer.
Best Practices
- Only include non-compete clauses for roles where other restrictions such as non-solicitation would be insufficient
- Keep the duration as short as possible, ideally three to six months for most roles
- Define the competing activities and geographical scope with precision
- Consider paying compensation during the restriction period to strengthen enforceability
- Review clauses regularly and update them when roles change or the competitive landscape shifts
Frequently Asked Questions
How long can a non-compete clause last in the UK?
There is no statutory maximum, but courts assess reasonableness. Non-compete clauses of three to six months are most commonly upheld. Twelve months may be justified for very senior roles with access to strategic confidential information. Longer periods are rarely enforceable. The Government has considered but not yet legislated a three-month maximum.
Can I be prevented from working in my industry after leaving a job?
A non-compete clause can restrict you from working for competitors, but only if the clause is reasonable in scope and duration and protects a legitimate business interest. If the clause is unreasonably broad, you can challenge it and it may be found unenforceable. Seeking legal advice before accepting or breaching a non-compete is recommended.
What is the difference between a non-compete and a non-solicitation clause?
A non-compete clause prevents you from working for or establishing a competing business entirely. A non-solicitation clause only prevents you from approaching specific clients or customers of your former employer but does not prevent you from working in the same industry. Non-solicitation clauses are less restrictive and therefore easier for employers to enforce.