Common Law Restraint of Trade Doctrine: Primary legal framework governing non-compete clauses. Establishes that any restraint must be reasonable and go no further than necessary to protect legitimate business interests.
Competition Act 1998: Ensures the non-compete clause doesn't create unfair restrictions on competition and must comply with competition law principles.
Employment Rights Act 1996: Establishes fundamental employment rights that might interact with restrictions and governs reasonable terms and conditions of employment.
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.
Reasonableness Requirements: Legal principle requiring that restrictions must be reasonable in duration, geographic scope, and scope of restricted activities, and must be proportionate to protect legitimate business interests.
Consideration Principle: Legal requirement that non-compete clauses must be supported by adequate consideration - for new employees, employment itself can be consideration; for existing employees, additional consideration is needed.
Legitimate Business Interests: Legal framework defining what can be protected: trade secrets, confidential information, customer connections, and workforce stability.
Human Rights Act 1998: Legislation protecting fundamental rights including the right to work and freedom to choose employment, which must be balanced against non-compete restrictions.
Post-Brexit EU Law Influence: While no longer directly applicable, many European Union legal principles remain relevant to the interpretation of non-compete clauses in English and Welsh law.
