Non-compete clauses are often included in UK employment contracts, particularly for more senior employees. These clauses are intended to protect the employer’s business – if an employee were to move to a competitor, their knowledge of the business, working practices and trade secrets might give any new employer an unfair advantage.
For non-competes to be enforceable, it is essential that they are narrowly drafted and go no further than is reasonable and necessary to protect the employer’s legitimate business interests. Otherwise, if a non-compete is too wide in its scope, it is likely to amount to an unfair restraint of trade and will be unenforceable.
Learn More: UK Founder Series: Building Your Team