Are non-compete clauses legal in UK?

Non-compete clauses and restrictive covenants are highly enforceable in the UK in order to protect the business the employee is leaving. They have to be narrowly defined and should only stay enforced for the time that is required to protect the business.

Are geographical limitations allowed in non-compete contracts?

As mentioned above, a valid non-compete agreement should include a geographical area limitation. This simply means that a former employee cannot compete with the employer within that specific location.

What is a reasonable radius for a non-compete?

Most non-compete contracts prohibit competitive activity by the ex-employee within a certain number of miles of the employer’s business. The typical language prohibits competitive activity within a 15 to 25 mile radius of the employer’s business.

Can a company stop you from joining a competitor?

No matter what’s in your contract, your old employer can’t stop you taking a new job unless it could lose them money. For example if you might: take customers to your new employer when you leave. start a competing business in the same local area.

Can you terminate an employee for looking for another job UK?

Q: Can I Be Fired for Looking for a New Job? A: No. To fire an employee legally the dismal must be classed as “fair”. Broadly, this means there must have been something wrong with your job performance.

What are geographic limitations?

Most insurance policies also have a separate “geographical limit” (sometimes called “territorial limit”) which can be used to exclude claims relating to work carried out in certain locations.

How is distance measured on non-compete clause?

MYTH #6: THE GEOGRAPHIC SCOPE OF A NON-COMPETITION RESTRICTION IS MEASURED BY DRIVING DISTANCE. REALITY: Geographic distance restrictions are measured as straight-line distances or “as the crow flies.” Such measurements are now readily available from Google Earth or other GPS measurement services.

What happens if you break a non-compete clause?

If the clause is enforceable and you’re in breach, there are various sanctions that your ex-employer can seek. These include: An injunction: This would stop you from carrying out your new role and you may also face payment of the other party’s legal costs.

Can a company stop me working for a competitor UK?