Employment Contract Template with Non-Compete Clause (UK 2025)
Last updated: February 2025
When You Need This Contract
Non-compete clauses restrict an employee from working for a competitor after their employment ends. Unlike in some jurisdictions, UK courts will enforce non-compete clauses if they protect a legitimate business interest and are no wider than reasonably necessary. The clause must be carefully tailored to the employee's role, seniority, and access to confidential information. Overly broad restrictions will be struck out entirely rather than narrowed by the court, so precision in drafting is essential.
Key Clauses
- Non-compete restriction with defined competitor scope
- Reasonable duration appropriate to the role and seniority
- Geographic limitation if applicable to the business
- Legitimate business interest justification
- Interaction with garden leave and other restrictive covenants
What to Watch Out For
- Drafting the non-compete too broadly in terms of competitors, duration, or geography, making it unenforceable
- Using identical non-compete clauses for all employees regardless of seniority and access to confidential information
Sample Clauses
- Sample non-compete clause: 'For a period of [6/12] months following the termination of your employment, you shall not, without the prior written consent of the Company, be employed by, engaged by, or provide services to any Restricted Business. A Restricted Business means any business which competes with [specific description of the Company's business] within [geographic area].'
- Sample legitimate interest justification: 'This restriction is intended to protect the Company's confidential information, trade secrets, and client relationships to which you have had access during your employment. The Company considers this restriction to be reasonable and necessary given your role as [title] with access to [specific confidential information].'
FAQ
How long can a non-compete clause last in the UK?
There is no statutory maximum, but courts assess reasonableness based on the role and circumstances. For senior executives with access to trade secrets and strategic information, 12 months is generally the maximum that courts will enforce. For mid-level employees, 6 months is more typical. Junior employees with limited access to confidential information are unlikely to justify any non-compete restriction. The shorter and more focused the restriction, the more likely it is to be enforceable.
What makes a non-compete clause enforceable under UK law?
A non-compete must protect a legitimate business interest such as trade secrets, confidential information, or client connections. It must be no wider than reasonably necessary in terms of duration, activity restricted, and geographic scope. The restriction must be proportionate to the employee's role and access to confidential information. The court will not rewrite an unreasonable clause to make it reasonable; it will simply strike it out entirely.
Generate this contract in 60 seconds
AccountsOS generates customised, UK-compliant employment contracts. From £10/month.
Get Started FreeThis is guidance for UK businesses, not legal advice. Templates are illustrative. Consult a solicitor for complex matters.
View all templates