Non Compete Agreement Uk

In an effort to design non-compete rules that are both universal and enforceable, both lawyers and employers are often tempted to include as many names as possible to cover any variation in what an outgoing employee cannot do after leaving. The Court of Appeal found that the restriction of competition was too broad. As a result, the entire clause has been added. If you are concerned that your plans to set up your business may be contrary to the non-compete agreement, seek legal advice from a specialist to make sure you understand the potential risks. It`s best to get advice before you quit or invest in your new business. A non-competition clause, also known as a “contract restricting competition”, is a clause in an employment contract that prohibits a worker from competing with a former employer for a certain period of time after the worker has left the company. Other usual restrictive agreements are intended to prevent the former employee from recruiting or interacting with certain customers or key employees of the company after they leave. Restrictive agreements and non-compete clauses (sometimes called restrictions after termination) are clauses contained in an employment contract or transaction agreement that prevent an outgoing employee from taking on key clients or employees of their former employer or from working for a competitor. An employer can only protect a legitimate business interest and restrictions must be narrowly defined to be proportionate. In the appeal, the Supreme Court judges unanimously ruled that the non-competition clause as amended was an unenforceable restriction on trade; However, this severance pay from the hurtful clause was appropriate, as it could be achieved without any change in the overall effect of the agreement. This clause has a broader impact than the others, as it prevents you from leaving your employer to work for a company with which they compete. This clause would also prevent you from leaving your employment relationship to settle on a freelance basis and work in the same field.