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Noncompete Agreement Template for England and Wales

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Key Requirements PROMPT example:

Noncompete Agreement

"Need a Noncompete Agreement for a senior software developer leaving to join a competitor, restricting work on similar products within a 50-mile radius of our London office for 12 months from March 2025."

Document background
A Noncompete Agreement is a crucial legal instrument under English and Welsh law used to protect legitimate business interests by restricting competitive activities. These agreements are commonly used in employment relationships, business sales, and partnership dissolutions. The document typically specifies restricted activities, geographic limitations, and duration of restrictions, while ensuring compliance with restraint of trade principles established in common law. Courts will only enforce restrictions that are reasonable and necessary to protect legitimate business interests.
Suggested Sections

1. Parties: Identification and details of the contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Restricted Activities: Specific activities the restricted party is prohibited from undertaking

5. Duration: Time period for which restrictions apply

6. Geographic Scope: Territorial limits of the restrictions

7. Consideration: Value exchanged for the restrictions

8. Governing Law: Jurisdiction and applicable law

Optional Sections

1. Garden Leave: Provisions for paid leave during notice period - used in employment-related noncompetes

2. Non-solicitation: Restrictions on approaching customers or employees - used when protecting customer relationships or workforce

3. Severance Payment: Additional compensation for restrictions - used when offering additional consideration for restrictions

4. Carve-outs: Specific exceptions to restrictions - used when certain activities need to be permitted

Suggested Schedules

1. Restricted Territory: Detailed definition of geographic areas covered

2. Restricted Clients: List of specific clients covered by restrictions

3. Competitor List: Definition or list of competing businesses

4. Consideration Schedule: Details of payments or benefits provided

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

























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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Common Law Restraint of Trade Doctrine: Fundamental principle establishing that restraints of trade are void unless they are reasonable and protect legitimate business interests. Key cases include Nordenfelt v Maxim Nordenfelt (1894) and TFS Derivatives v Morgan (2004).

Employment Rights Act 1996: Primary legislation governing employment relationships in England and Wales. Particularly relevant for noncompete clauses within employment contracts and provisions relating to employee rights and contract terms.

Competition Act 1998: Ensures the noncompete agreement doesn't breach competition law. Particularly important for senior employees or business-to-business contexts.

Trade Secrets (Enforcement, etc.) Regulations 2018: Legislation governing the protection of confidential information and trade secrets, helping define legitimate business interests that can be protected through noncompete agreements.

Senior Courts Act 1981: Legislation relevant to enforcement mechanisms and remedies, particularly regarding injunctive relief for breach of noncompete agreements.

European Union (Withdrawal) Act 2018: Post-Brexit legislation affecting the application of competition law and retained EU law principles in noncompete agreements.

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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