Are non-compete clauses and restrictive covenants enforceable?
Sometimes. The government's 2025 working paper explains that under current law a non-compete, like any clause in restraint of trade, is unenforceable unless the employer can show it is reasonable, which a court decides if it is challenged. There is currently no statutory limit on non-compete length in force; reform options are still being considered.
The current position
Non-compete clauses restrict an individual's ability to work for, or set up, a competing business after leaving a job. The Department for Business and Trade's working paper states that the starting point under current law is that such a clause is unenforceable unless the employer can demonstrate it is reasonable.
Enforcement of restrictive covenants, including non-competes, is through the county courts or the High Court, where the losing party generally bears the winner's legal costs.
Reform proposals
In May 2023 the previous government said it would introduce a 3-month statutory limit on non-compete clauses, but the working paper notes no action was taken. The working paper, open from 26 November 2025 to 18 February 2026, sought views on options rather than making firm proposals.
- A statutory limit on the length of non-compete clauses
- Different limits by company size
- A full ban on non-compete clauses in employment contracts
- A ban below a salary threshold, possibly combined with a statutory limit above it
Other covenants and alternatives
The working paper also asked whether any restrictions should extend to other restrictive covenants, such as non-dealing clauses. It mentions garden leave, where the worker is paid, as an alternative some employers use. Confidentiality clauses cannot stop a worker making a protected whistleblowing disclosure.
The law
“is void in so far as it purports to preclude the worker from making a protected disclosure…”
Sources
- Working paper on options for reform of non-compete clauses in employment contracts · GOV.UK
- Reform of non-compete clauses in employment contracts: working paper · GOV.UK
- When an employee does not have to work notice - Notice periods · Acas
- Whistleblowing guidance for employers · GOV.UK
General information for employers in Great Britain, not legal advice. Check the official sources for your situation.
What employers can do
- List the specific business interests each covenant is meant to protect
- Check each restriction is no wider than needed to protect a legitimate business interest
- Consider whether garden leave or confidentiality terms would be enough
- Review covenants when an employee is promoted or changes role
- Watch for any government announcement on non-compete reform
Related answers
- What notice must employers give, and when can they use garden leave? After one month's service, employers must give at least one week's statutory notice, rising to one week per full year from two years' service, up to 12 weeks after 12 years. A longer contractual notice period applies if the contract says so. Garden leave means telling an employee not to work some or all of their notice while paying them as usual.
- What makes a settlement agreement valid? To waive employment tribunal claims, a settlement agreement must be in writing, relate to particular complaints or proceedings, and follow advice to the employee from an insured, relevant independent adviser who is named in the agreement. It must also state that the statutory conditions are satisfied. A general 'full and final settlement' clause is not enough.