Non-Compete Agreement Template for the UK

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What is a Non-Compete Agreement?

A Non-Compete Agreement stops employees from working for competitors or starting rival businesses after leaving their job. These contracts are common in UK industries where staff have access to sensitive information, trade secrets, or valuable client relationships.

Under English law, non-competes must be reasonable in their scope, duration, and geographic limits to be enforceable. Courts typically allow restrictions lasting 6-12 months, though they'll strike down terms that unfairly prevent someone from earning a living. Many employers use these agreements to protect legitimate business interests, particularly when hiring senior executives or specialists.

Sample clauses: standard wording in a UK non-compete agreement

4. Post-Termination Restrictions
4.1 The Employee shall not, for a period of [6] months following the Termination Date, be engaged, employed, concerned or interested in any business which competes with those parts of the Business with which the Employee was materially concerned during the [12] months before the Termination Date, within [the United Kingdom / a radius of [25] miles from [the Employee's principal place of work]].
4.2 The Employee shall not, for a period of [6] months following the Termination Date, solicit or entice away, or attempt to solicit or entice away, the custom of any Restricted Customer with a view to providing Restricted Services in competition with the Business.
4.3 The Employee shall not, for a period of [6] months following the Termination Date, solicit or employ any Key Employee, being a person employed by the Company in a senior or technical capacity with whom the Employee dealt materially during the [12] months before the Termination Date.
4.4 Any period of Garden Leave served by the Employee under clause [3] shall be set off against, and reduce by an equivalent amount, the period specified in each of clauses 4.1 to 4.3.

5. Reasonableness, Severance and Consideration
5.1 The Employee acknowledges that the restrictions in clause 4 are no wider than is reasonably necessary to protect the Company's legitimate business interests in its confidential information, trade secrets, customer connection and stability of workforce.
5.2 Each restriction in clause 4 is a separate and severable undertaking, and if any restriction is held void but would be valid if some part of it were deleted or its period, area or scope reduced, it shall apply with such modification as is necessary to make it valid and enforceable.
5.3 In consideration of the Employee entering into the restrictions in clause 4, the Company shall pay the Employee the sum of [£1] receipt of which the Employee acknowledges, without prejudice to the consideration provided by the Employee's continued employment.

Illustrative extract showing typical drafting under the law of England and Wales. Documents generated with GenieAI are tailored to your rules, standards and context.

Frequently Asked Questions

When should you use a Non-Compete Agreement?

Use a Non-Compete Agreement when hiring employees who will gain access to sensitive business information or develop close relationships with your clients. This is especially important for senior executives, sales professionals, and technical specialists who could harm your business by taking knowledge or relationships to competitors.

The agreement works best when introduced during initial employment negotiations. Key triggers include roles involving product development, client management, or strategic planning. Remember that English courts look closely at restrictions - focus on protecting specific business interests rather than broadly limiting someone's future employment options.

What are the different types of Non-Compete Agreement?

Who should typically use a Non-Compete Agreement?

  • Employers: Tech companies, professional services firms, and businesses with valuable trade secrets use these agreements to protect competitive advantages
  • Senior Executives: Often subject to strict Non-Compete Agreements due to their access to strategic information and key client relationships
  • Sales Representatives: Commonly bound by restrictions to prevent them taking customer lists and relationships to competitors
  • Technical Specialists: Engineers, developers, and research staff who have access to proprietary technology or processes
  • HR Departments: Responsible for implementing and maintaining these agreements as part of employment contracts
  • Legal Counsel: Draft and review agreements to ensure enforceability under English law

How do you write a Non-Compete Agreement?

  • Job Details: Document the employee's role, responsibilities, and access to sensitive information or client relationships
  • Geographic Scope: Define specific regions where restrictions will apply, keeping them reasonable for the business needs
  • Time Period: Determine duration of restrictions, typically 6-12 months to maintain enforceability
  • Business Interests: List specific trade secrets, client relationships, or other assets needing protection
  • Compensation: Consider offering payment during the restricted period to strengthen enforceability
  • Draft Review: Use our platform to generate a legally sound agreement, ensuring all key elements are included and properly structured

What should be included in a Non-Compete Agreement?

  • Parties: Full legal names and addresses of employer and employee
  • Scope Definition: Clear description of prohibited competitive activities and business areas
  • Duration: Specific time period for restrictions, stated in months
  • Geographic Limits: Precise boundaries where restrictions apply
  • Legitimate Interest: Statement explaining business interests being protected
  • Consideration: Details of compensation or benefits provided in exchange
  • Severability Clause: Ensures partial enforcement if some terms are invalid
  • Signature Block: Space for dated signatures from all parties
  • Governing Law: Explicit reference to English law jurisdiction

What's the difference between a Non-Compete Agreement and a Non-Disclosure Agreement?

While Non-Compete Agreements and Non-Disclosure Agreements both protect business interests, they serve distinct purposes and operate differently under English law. A Non-Compete restricts future employment activities, while an NDA safeguards confidential information.

  • Scope of Protection: Non-Competes prevent competitive activities for a specific time and region, while NDAs focus solely on protecting confidential information indefinitely
  • Enforceability Requirements: Non-Competes face stricter scrutiny from courts and must be reasonable in duration and geographic scope. NDAs generally face fewer enforcement challenges
  • Duration: Non-Competes typically last 6-12 months post-employment, while NDAs can remain effective indefinitely
  • Primary Use: Non-Competes are mainly for key employees with competitive threat potential, while NDAs are used broadly with employees, contractors, and business partners

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Reviewed by

Swetha Meenal

Legal Engineer, GenieAI

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A lawyer, legal researcher and legal tech founder, Swetha has built AI products deployed inside Tier 1 firms and enterprises. She ensures GenieAI's alignment with the latest regulation and executes testing on the legal robustness of Genie output.

Reviewed by

Imad Mohammed Nazar

Legal Engineer, GenieAI

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A Skadden-trained M&A lawyer, Imad advised on cross-border transactions and contractual risk before moving into legal AI. He reviews GenieAI's output for compliance and enforceability across our 150+ supported jurisdictions, as well as facilitating external benchmarking.

Jurisdiction

England & Wales

Publisher

GenieAI

Cost

Free to use

Last updated

About the Non-Compete Agreement

  • Job Details: Document the employee's role, responsibilities, and access to sensitive information or client relationships
  • Geographic Scope: Define specific regions where restrictions will apply, keeping them reasonable for the business needs
  • Time Period: Determine duration of restrictions, typically 6-12 months to maintain enforceability
  • Business Interests: List specific trade secrets, client relationships, or other assets needing protection
  • Compensation: Consider offering payment during the restricted period to strengthen enforceability
  • Draft Review: Use our platform to generate a legally sound agreement, ensuring all key elements are included and properly structured

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