Non Compete Clause In Appointment Letter Template for England and Wales

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Key Requirements PROMPT example:

Non Compete Clause In Appointment Letter

"I need a Non Compete Clause in Appointment Letter for a senior software developer who will be joining our fintech startup in March 2025, with specific restrictions on working for competitors within London and restrictions on soliciting our clients for 12 months post-employment."

Document background
The Non Compete Clause in Appointment Letter is essential for protecting business interests in competitive industries under English and Welsh law. It is typically used when appointing employees to positions where they will have access to sensitive information, trade secrets, or valuable client relationships. The clause outlines specific restrictions on post-employment activities, including working for competitors or starting competing businesses. To be enforceable in England and Wales, the restrictions must be reasonable and proportionate, protecting legitimate business interests without unduly limiting the employee's ability to work.
Suggested Sections

1. Party Details: Identification of the employer and employee, including full legal names and addresses

2. Duration of Restriction: Clear statement of the time period for which the non-compete obligations will apply post-employment

3. Geographic Scope: Definition of the geographical area where the restrictions apply

4. Restricted Activities: Detailed description of the specific activities, businesses, and roles that are prohibited

5. Consideration: Statement of the compensation or benefits provided in exchange for accepting the restriction

Optional Sections

1. Garden Leave Provisions: Optional provisions for placing the employee on garden leave during notice period, typically used for senior positions

2. Non-Solicitation of Customers: Additional restrictions on approaching or dealing with customers, used when employee has significant customer relationships

3. Non-Solicitation of Employees: Restrictions on approaching other employees, typically included for management positions

4. Exceptions and Permitted Activities: Specific carve-outs and activities that are permitted despite the general restrictions

Suggested Schedules

1. Schedule 1 - List of Competitors: Detailed list of specific competing businesses or organizations covered by the restriction

2. Schedule 2 - Territory Map: Visual representation or detailed description of geographic restrictions if applicable

3. Schedule 3 - Consideration Details: Detailed breakdown of any compensation or benefits provided in exchange for the restrictions

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 Principles on Restraint of Trade: Fundamental doctrine stating that restraints of trade are void unless they are reasonable and necessary to protect legitimate business interests

Competition Act 1998: Primary legislation ensuring the non-compete clause doesn't create anti-competitive effects in the market

Employment Rights Act 1996: Key legislation governing fundamental employment rights, obligations and the relationship between employer and employee

Trade Secrets Regulations 2018: Legislation governing the protection of confidential information and trade secrets that may need to be referenced in the non-compete clause

Human Rights Act 1998: Legislation protecting fundamental rights including Article 11 (freedom of association) and right to work considerations

Reasonableness Test Requirements: Legal requirement that restrictions must be reasonable in duration, geographic scope, and scope of restricted activities, being no wider than necessary to protect legitimate business interests

Legitimate Business Interests Doctrine: Legal principle requiring identification and protection of legitimate business interests such as trade secrets, confidential information, customer connections, and workforce stability

Consideration Requirement: Legal principle requiring adequate consideration if non-compete clause is introduced after employment has commenced

Garden Leave Provisions: Legal considerations regarding the interaction between garden leave clauses and non-compete restrictions, including the overall length of combined restrictions

Post-Brexit Legal Framework: Consideration of EU retained law and developing case law in England and Wales following Brexit

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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