Non Compete Agreement Joining Client Template for England and Wales

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Key Requirements PROMPT example:

Non Compete Agreement Joining Client

"I need a Non Compete Agreement Joining Client for a senior software developer who will be placed with our banking client from March 2025, with specific restrictions on working with fintech companies in London and strict confidentiality provisions regarding trading algorithms."

Document background
The Non Compete Agreement Joining Client is essential when an employee is being placed with a client in a position where they could gain significant competitive advantage through access to confidential information, client relationships, or trade secrets. This agreement, governed by English and Welsh law, specifically addresses the unique circumstances where an employee works directly with clients and could potentially exploit these relationships for competitive advantage. It typically includes detailed provisions about permitted and prohibited activities, duration of restrictions, and geographical scope, all carefully balanced to ensure enforceability under UK law while protecting legitimate business interests.
Suggested Sections

1. Parties: Identification and details of the employer and employee

2. Background: Context of the agreement and employment relationship

3. Definitions: Key terms used throughout the agreement including relevant business activities, confidential information, and competitive activities

4. Non-Compete Obligations: Core restrictions and scope of non-compete provisions, including specific prohibited activities

5. Duration: Time period for which restrictions apply, ensuring reasonableness under common law

6. Geographic Scope: Territorial limitations of restrictions, defining specific regions or jurisdictions

7. Consideration: Value provided in exchange for restrictions, ensuring enforceability

8. Execution: Signature blocks and execution provisions for all parties

Optional Sections

1. Non-Solicitation Provisions: Additional restrictions on soliciting customers, employees, or suppliers of the business

2. Garden Leave: Provisions for paid leave during notice period to prevent immediate competition

3. Severance Payments: Additional compensation terms and payment schedules for consideration

4. Remedies: Specific remedies available in case of breach, including injunctive relief

Suggested Schedules

1. Schedule 1 - Restricted Companies: List of specific competitors and companies covered by the non-compete restrictions

2. Schedule 2 - Restricted Territories: Detailed geographic areas and jurisdictions covered by the restrictions

3. Schedule 3 - Confidential Information: Detailed list of protected information and trade secrets covered by the agreement

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

Relevant Industries
Relevant Teams
Relevant Roles
Industries

Common Law Doctrine of Restraint of Trade: Fundamental legal principle stating that non-compete clauses must be reasonable to be enforceable, must protect legitimate business interests, and cannot be wider than necessary

Competition Act 1998: Legislation ensuring that restrictive covenants do not create anti-competitive effects and must comply with competition law principles

Employment Rights Act 1996: Key legislation governing employment relationships, defining the rights and obligations of employees in the context of restrictive covenants

Trade Secrets (Enforcement, etc.) Regulations 2018: Regulations governing the protection of confidential information and trade secrets, relevant for non-compete provisions

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

Reasonableness Test: Legal requirement that non-compete restrictions must be reasonable in terms of scope, geographic limitations, time duration, and must only protect legitimate business interests

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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