United Kingdom Restrictive Covenant Agreement
Also known as: Non-Compete Agreement · Post-Termination Restrictions · Non-Compete Clause
Generate a restrictive covenant agreement tailored to United Kingdom law. Our AI incorporates United Kingdom-specific statutory requirements, disclosure obligations, and legal standards into every clause.
Restrictive Covenant Agreement
Also called: Non-Compete Agreement, Post-Termination Restrictions
Legal Requirements
United Kingdom Legal Requirements
Key United Kingdom statutes and obligations that apply to your restrictive covenant agreement.
Post-termination restrictive covenants must be reasonable in scope, geography, and duration
Courts apply a two-stage test: (1) is there a legitimate business interest to protect? (2) is the restriction reasonable?
Legitimate interests include: trade secrets, confidential information, customer connections, and stable workforce
Garden leave clauses are commonly used to prevent departing employees from immediately joining competitors
Covenants should be drafted specifically by role — generic blanket restrictions are routinely struck down
Blue-pencilling: UK courts may sever unreasonable parts and enforce the remainder
Restrictions & Key Considerations
Non-competes that are too wide in geography, time, or scope will be unenforceable
Non-competes cannot prevent an employee from earning a living in their area of expertise
Consideration is required — restrictions added after employment starts need fresh consideration (e.g., promotion, bonus)
The government proposed banning non-competes exceeding 3 months in 2023 (consultation ongoing as of 2024)
FAQ
United Kingdom Restrictive Covenant Agreement FAQ
Common questions about the restrictive covenant agreement under United Kingdom law.
Are non-compete clauses enforceable in the UK?
Yes, if they are reasonable. UK courts assess whether the clause protects a legitimate business interest and whether the restriction goes no further than necessary. Overly broad restrictions are regularly struck down.
What is garden leave in the UK?
Garden leave is a period where an employee is required to stay at home (not come into work) during their notice period, remaining on full pay. It serves a similar purpose to a non-compete by keeping the employee away from competitors during a transition period.
How long can a UK non-compete last?
Typical enforceable periods range from 3 to 12 months depending on seniority and industry. The UK government consulted on capping non-competes at 3 months in 2023, though legislation had not passed as of 2024.
Can a non-compete be added after an employee starts work?
Yes, but it requires fresh consideration — some benefit given to the employee in exchange, such as a pay rise, promotion, or bonus payment. Simply continuing employment is not sufficient consideration in England and Wales.
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Non-Compete Agreement by Country
Laws vary significantly by country. Find the right form for your jurisdiction.
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