Basic Non Compete Agreement for the United Kingdom

Basic Non Compete Agreement Template for England and Wales

A Non-Compete Agreement under English and Welsh law is a legally binding contract that restricts an individual from competing with their former employer or business partner for a specified period and within a defined geographic area. The agreement must be reasonable in scope and duration to be enforceable under English law, typically lasting 6-12 months. It serves to protect legitimate business interests while balancing the individual's right to work.

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What is a Basic Non Compete Agreement?

The Basic Non-Compete Agreement is utilized when organizations need to protect their legitimate business interests from competition by former employees or business associates. This document, governed by English and Welsh law, sets out restrictions on competitive activities, including duration, geographic scope, and specific prohibited actions. It must be carefully drafted to ensure enforceability while maintaining reasonable limitations that courts will uphold. The agreement is particularly relevant in situations involving access to confidential information, client relationships, or trade secrets.

What sections should be included in a Basic Non Compete Agreement?

1. Parties: Identifies and defines the contracting parties

2. Background: Sets out context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Restricted Activities: Specifies prohibited activities during restriction period

5. Duration: Defines length of non-compete obligations

6. Geographic Scope: Specifies territorial limits of restrictions

7. Governing Law: Specifies applicable law and jurisdiction

What sections are optional to include in a Basic Non Compete Agreement?

1. Consideration: Details payment or benefit provided in exchange for restrictions - used when agreement is post-employment or standalone

2. Garden Leave: Provisions for paid leave during notice period - used when part of employment agreement

3. Severability: Allows rest of agreement to survive if parts are found unenforceable - used when additional protection desired

What schedules should be included in a Basic Non Compete Agreement?

1. Restricted Territory Map: Visual representation of geographic restrictions

2. Competitor List: Specific companies or organizations covered by restrictions

3. Consideration Schedule: Details of payments or benefits provided as consideration

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Cost

Free to use
Industries

Common Law Restraint of Trade Doctrine: Fundamental legal doctrine that governs non-compete clauses, requiring them to be reasonable and only protect legitimate business interests to be enforceable

Competition Act 1998: Primary legislation ensuring the agreement doesn't create anti-competitive effects and complies with competition law principles

Employment Rights Act 1996: Key legislation governing employment relationships, affecting the enforceability and reasonable terms of non-compete clauses in employment contexts

Trade Secrets (Enforcement, etc.) Regulations 2018: Legislation protecting confidential information and trade secrets, influencing what activities and information can be reasonably restricted

Human Rights Act 1998: Legislation protecting fundamental rights including freedom of association and right to work, which must be balanced against business protection

Geographic Scope Requirement: Legal principle requiring that any geographical restrictions in the non-compete must be reasonable and justified

Duration Requirement: Legal principle requiring that the time period of the non-compete must be reasonable, typically 6-12 months maximum

Scope Definition Requirement: Legal principle requiring that restricted activities must be clearly and specifically defined in the agreement

Consideration Requirement: Legal principle requiring that post-employment non-compete clauses must be supported by adequate consideration to be enforceable

Legitimate Business Interests: Legal principle requiring that non-compete restrictions must only protect legitimate business interests and not go beyond what is necessary

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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