Non-Compete Enforceability UK

Non-compete clauses are enforceable in the UK only if they protect a legitimate business interest and go no further than reasonably necessary. Courts will not rewrite unreasonable clauses. Duration, geographic scope, and the employee's seniority and access to confidential information are key factors.

Last updated: February 2025

3-12 months

Typical enforceable duration

On the employer

Burden of proof

3 months (not yet enacted)

Proposed statutory cap

What the Law Says

Non-compete covenants are restraints of trade and prima facie void at common law. The employer bears the burden of proving the restriction protects a legitimate business interest (trade secrets, client connections, workforce stability) and is no wider than reasonably necessary in scope, duration, and geography. Leading cases include Nordenfelt v Maxim Nordenfelt (1894) and Egon Zehnder v Tillman (2019).

Your Obligations as an Employer

  • Only impose non-competes where a legitimate business interest requires protection
  • Tailor restrictions to the specific role and the employee's access to sensitive information
  • Review and update restrictive covenants when roles change significantly
  • Consider whether less restrictive alternatives (non-solicitation) would suffice

What to Include in Contracts

Define the restricted activities precisely, specify the duration (typically 3-12 months), limit geographic scope where relevant, include a severance clause allowing the court to sever unenforceable parts (per Tillman), and link restrictions to garden leave provisions.

View related contract template

Common Mistakes

  • Using overly broad boilerplate clauses not tailored to the role
  • Imposing non-competes on junior employees with no access to confidential information
  • Not updating restrictions when an employee is promoted to a more senior role

FAQ

Will the UK introduce a statutory cap on non-competes?

The previous government proposed limiting non-competes to 3 months in 2023, but this was not enacted before the general election. The current government has not confirmed whether it will proceed with the proposal. For now, enforceability remains governed by common law reasonableness.

Can a non-compete be enforced if the employer terminates without cause?

Courts may be less willing to enforce a non-compete where the employer dismissed the employee, particularly without cause, as this can undermine the reasonableness of the restriction. However, a well-drafted clause linked to garden leave and adequate notice may still be enforceable.

Related Topics

Restrictive Covenant Enforceability

Garden Leave Rules

Settlement Agreement Rules

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This is guidance for UK employers, not legal advice. For complex employment law matters, consult a qualified employment solicitor or ACAS.

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