30-60 minMedium

How to Add a Non-Compete Clause

Add a non-compete clause by defining a reasonable geographical area, time limit (typically 3-12 months), and scope of restricted activities. The clause must protect a legitimate business interest and go no further than reasonably necessary.

Last updated: February 2025

Step-by-Step Guide

1

Identify the legitimate business interest

Determine what you are protecting, such as trade secrets, client relationships, or a stable workforce. Courts will not enforce non-competes that merely restrict competition.

Tips
  • •Be specific about the interest being protected.
2

Define the scope and duration

Set a geographic area, duration (usually 3-12 months), and the specific activities being restricted. Keep each element as narrow as possible while still protecting the interest.

Tips
  • •Shorter durations are more likely to be upheld.
  • •Consider whether a non-solicitation clause would suffice instead.
3

Draft the clause with precise wording

Use clear, specific language that defines restricted activities, the relevant market, and the time period. Avoid vague terms like 'any competing business'.

Tips
  • •Include a severability provision so one unenforceable restriction does not void the others.
4

Ensure valid consideration

If adding to an existing contract, provide fresh consideration such as a pay rise, bonus, or promotion. For new hires, the employment itself is sufficient consideration.

Tips
  • •Document the consideration clearly in the amendment.

Legal Requirements

Under English common law, restrictive covenants in restraint of trade are void unless they protect a legitimate business interest and are reasonable in scope, duration, and geography. The burden of proving reasonableness falls on the party seeking to enforce the clause.

Common Mistakes

Making the clause too broad in geography or duration, rendering it unenforceable
Failing to provide fresh consideration when adding the clause to an existing employee's contract
Using identical non-compete clauses for all employees regardless of seniority or access to sensitive information

Template / Example

For a period of [6/12] months following termination, the Employee shall not, within [the United Kingdom / a 25-mile radius of the Employer's premises], directly or indirectly engage in, or be employed by, any business that competes with [specific business activity] of the Employer.

When to Get a Solicitor

Always recommended for non-compete clauses, as enforcement depends heavily on precise drafting. A poorly worded clause is worse than no clause at all.

FAQ

How long can a non-compete clause last in the UK?

There is no statutory maximum, but courts rarely enforce clauses beyond 12 months. For most employees, 3-6 months is considered reasonable.

Are non-compete clauses enforceable for junior employees?

They are much harder to enforce for junior staff because they are unlikely to have access to trade secrets or significant client relationships that justify the restriction.

Related Guides

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This is guidance, not legal advice. Consult a solicitor for complex matters.

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