Non-compete clause (UK): what it means and when it binds you
Also known as: restrictive covenant, post-termination restriction, non-competition covenant.
- Doctrine of restraint of trade
- Tillman v Egon Zehnder [2019] UKSC 32
Last reviewed 23 Jul 2026
A non-compete clause is a promise that, after a contract ends, you will not work for a competitor or set up a competing business for a set period. In the UK it only binds you if it protects a genuine business interest and goes no further than reasonably necessary. A clause that is too wide is treated as a restraint of trade and is void.
That gap between "written into your contract" and "enforceable against you" is the whole reason to read a non-compete before you sign.
Key Takeaways
- A non-compete is void by default and only becomes enforceable if the business proves it is reasonable in scope, duration and geography.
- UK courts will not rewrite an unreasonable clause to save it, though since Tillman v Egon Zehnder they can delete offending words if what is left still makes sense.
- There is no statutory time limit. Reform, including a possible cap, was consulted on over 2025 to 2026 but is not law.
- Even an unenforceable clause can cost you money and stress to challenge, so the time to deal with it is before you sign.
What does a non-compete clause do?
A non-compete restricts what work you can take on after your relationship with a business ends. You usually find it near the end of an employment contract or service agreement, under a heading like "Restrictions", "Restrictive Covenants" or "Post-Termination Obligations".
It normally has three moving parts:
- Scope: the type of work, or the businesses, you cannot join (for example, "any competing business").
- Duration: how long the restriction lasts after you leave (for example, six months).
- Geography: the area it covers (for example, "the United Kingdom").
A non-compete often sits alongside a non-solicitation clause, which stops you approaching clients or colleagues, and a garden leave clause, which keeps you away from work during your notice period. Together these are known as restrictive covenants.
What a non-compete clause means for you
If you have been handed a contract with a non-compete, the practical question is not "is this legal?" but "how much could this actually stop me doing, and for how long?"
A tightly drafted clause can genuinely prevent you taking your next role or client for months. A sweeping one is far more likely to be unenforceable, but you do not want to learn that in court. Either way, the clause is a negotiation point, not a fixed rule.
Take a hypothetical: your contract bans you from "any competing business anywhere in the United Kingdom for 12 months". For a mid-level role that is exactly the kind of over-reach a court may cut back, because it stops far more than the business needs to protect. But until someone tests it, the wording still hangs over your next move. For freelancers, the picture shifts again: our deep dive on non-compete clauses in freelance contracts covers why courts scrutinise a restraint harder when you get no pay during the restricted period.
Is a non-compete clause enforceable in the UK?
Only if it is reasonable. There is no single statute that governs non-competes. They are controlled by the common-law doctrine of restraint of trade: any clause that restricts your freedom to work is void as contrary to public policy, unless the business can show it is reasonable.
To be reasonable, the clause must:
- Protect a legitimate interest. Confidential information, trade secrets, and client or supplier connections count. Simply not wanting competition does not.
- Go no wider than necessary to protect that interest, in what it restricts, how long it lasts, and the area it covers.
The leading modern case is Tillman v Egon Zehnder Ltd [2019] UKSC 32. The Supreme Court confirmed that courts will not rewrite a covenant to make it fair, but they can sever (delete) offending words if doing so leaves a workable restriction and does not change the overall effect. This is sometimes called the "blue-pencil" test. In that case a single phrase, "or interested", was struck out and the rest of the six-month non-compete survived.
One point is often misunderstood: as of 2026 there is no statutory cap on how long a non-compete can run. The government published a working paper on reform in late 2025 and consulted into early 2026, with options that included a duration cap (a three-month limit was floated), a salary threshold, or even a ban. None of it has become law, so the reasonableness test above is still what decides these clauses.
Non-compete clause: a reasonable version vs an aggressive one
| A reasonable version | A red-flag version | |
|---|---|---|
| Duration | 3 to 6 months for most roles | 12 to 24 months for a non-senior role |
| Scope | Named direct competitors, or a defined type of competing service | "Any business that competes with us or our group companies" |
| Geography | Where you actually worked, or where the client operated | "The United Kingdom" or "worldwide" with no real link to your role |
| Interest protected | Clear link to confidential information or client relationships you handled | No stated reason beyond blocking competition |
The wider a clause is on any one of these, the weaker it usually is. It is also the more disruptive if the business decides to enforce it anyway, which is why the wording is worth fixing up front.
What to push back on before you sign
- Shorten the time. Ask for the shortest period that reflects the role. Three to six months is a normal ask.
- Narrow the scope. Swap "any competing business" for named competitors or a specific service.
- Tie geography to reality. Limit it to the area you actually cover.
- Ask what interest it protects. If the business cannot point to real confidential information or client relationships, the clause has weak foundations.
- Get any change in writing. A verbal reassurance that "we would never enforce it" is worth nothing once the contract is signed.
If you are not sure how a specific non-compete would apply to you, that is exactly what Ookulli is for: upload the contract and see which clauses are standard and which are unusually aggressive, with each flag traced back to the UK law behind it, before you commit.
This page is general information, not legal advice. The restraint of trade rules described here are English law, and apply in England and Wales; Scotland and Northern Ireland take their own approach. For a high-value or complex situation, speak to a qualified solicitor.
Frequently asked questions
Are non-compete clauses enforceable in the UK?
Sometimes. A non-compete is void as a restraint of trade unless the business can show it protects a legitimate interest, such as confidential information or client connections, and goes no wider than reasonably necessary in what it stops, for how long, and over what area. A clause that is too broad usually falls.
How long can a non-compete clause last in the UK?
There is no fixed statutory limit. In practice, courts are most comfortable with 3 to 6 months for most roles, and 12 months only for senior people with real access to sensitive information. The government consulted on a possible statutory cap over 2025 to 2026, but as of 2026 nothing has been passed into law.
Can I ignore a non-compete clause if I think it is unenforceable?
It is risky. Even a weak clause can be used to threaten legal action, and testing it means time, cost and uncertainty. The safer route is to check the wording before you sign and negotiate it down, rather than gamble on a court agreeing with you later.
Do non-compete clauses apply to freelancers and contractors?
They can appear in service agreements, and the same reasonableness test applies. Courts often look harder at a restraint on a self-employed contractor who gets no pay during the restricted period, but a narrow, well-drafted clause can still bind you.