Non-Compete Clauses in the UK: Drafting, Enforcement and Reform
A non-compete clause is a contractual restriction that prevents a person from working for a competitor or running a competing business for a set period and area after their employment or business relationship ends
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In the UK, non-compete clauses are only enforceable if they protect a legitimate business interest and go no further than reasonably necessary. Adam Bernard Solicitors drafts enforceable restrictions for employers and advises employees and sellers on whether a non-compete is likely to bind them.
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Are Non-Compete Clauses Enforceable in the UK?
Non-compete clauses are presumed to be an unlawful restraint of trade and are only enforced if the party relying on them shows they protect a legitimate interest and are reasonable. Courts consider:
- Legitimateinterest – such as trade secrets, confidential information, client connections or workforce stability. Simply preventing competition is not enough.
- Duration– how long the restriction Shorter periods are more likely to be upheld.
- Geographyand scope – the area and activities covered must match the employee’s actual
- Seniority – restrictions on senior staff with access to strategy are more likely to be justified than restrictions on junior staff.
Reasonableness is judged at the date the contract was entered into, so restrictions should be reviewed when an employee is promoted.
Government Plans to Reform Non-Compete Clauses
The UK government has confirmed it intends to legislate to restrict non-compete clauses in employment contracts. A government working paper published in November 2025 considered options including a statutory maximum duration, a salary threshold, mandatory compensation during the restricted period and an outright ban. In October 2026 the government announced it will bring forward legislation, but the detail and timing are not yet confirmed. Any change will require primary legislation, and we will update this page as the position develops.
What this means now: existing non-competes remain subject to the common-law test. Employers should use a combination of protections, and avoid relying on long or broad non-competes that may become unenforceable.
Alternatives to a Non-Compete Clause
Non-solicitation, non-dealing and confidentiality clauses often protect the business more reliably than a non-compete.
- Non-solicitationof clients – prevents approaching the employer’s
- Non-dealing– prevents doing business with those clients even if they make
- Non-poachingof staff – prevents recruiting key
- Confidentiality – protects trade secrets, which also have statutory protection under the TradeSecrets (Enforcement, ) Regulations 2018. See our non-disclosure agreements page.
- Gardenleave – keeps the employee out of the market during a longer notice
Non-Competes in Business Sales, Joint Ventures and Franchises
Non-competes given by sellers of a business, joint venture partners or franchisees are judged more generously than employee restrictions, because the parties usually have more equal bargaining power. They must still be reasonable and comply with the Competition Act 1998. See our joint venture agreements and franchise agreements pages.
How to Draft an Enforceable Non-Compete Clause
- Identifythe specific legitimate interest you need to
- Tailorthe restriction to the role, rather than using one clause for all
- Keepthe duration as short as possible, often three to six months for
- Definecompeting activities
- Offsetany garden leave against the restricted
- Includeseparate, severable restrictions so one weak clause does not undermine the
Refresh restrictions on promotion with fresh consideration.
Non-Compete Checklist for Employers
Before relying on a non-compete, employers should be able to answer yes to each of these questions.
- Doesthe employee have access to confidential information or client relationships that a competitor could exploit?
- Isthe restricted period no longer than the time needed for that information to go stale or for a replacement to build relationships?
- Isthe restricted activity limited to the business the employee was actually involved in?
- Wasthe restriction reviewed and refreshed when the employee was last promoted?
- Arenon-solicitation and confidentiality clauses also in place as a fallback?
Breach of a Non-Compete: Remedies
If a former employee breaches an enforceable restriction, the employer can seek an injunction to stop the breach and damages for losses caused. Speed is essential, as courts expect employers to act promptly.
Employees: Can You Challenge a Non-Compete?
Yes. Many non-competes are drafted too widely to be enforceable. We review your restrictions, explain the risk of a claim, and negotiate a release where appropriate through our contract review service.
For full contracts, see senior employee contracts and directors’ service agreements. See all our commercial contract services.
Call 0207 100 2525 (24/7) or book a free consultation to discuss your contract.
This page is for information only and does not constitute legal advice.
Frequently Asked Questions
Are non-compete clauses legal in the UK?
Is the UK banning non-compete clauses?
How long can a non-compete clause last in the UK?
Does garden leave affect a non-compete clause?
What happens if I break a non-compete clause?
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