Non Profit Non Compete Agreement Template for England and Wales

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Key Requirements PROMPT example:

Non Profit Non Compete Agreement

"I need a Non Profit Non Compete Agreement for our departing Executive Director of a wildlife conservation charity, restricting them from working with similar organizations within a 50-mile radius of London for 12 months starting January 2025."

Document background
The Non-Profit Non-Compete Agreement is essential for protecting the interests of charitable and non-profit organizations operating under English and Welsh law. This document is typically employed when senior personnel or partner organizations need to be restricted from competing activities that could harm the organization's mission or operations. It includes specific provisions about restricted activities, geographic scope, and duration, while ensuring compliance with UK competition law and charitable regulations. The agreement is particularly crucial for organizations handling sensitive donor relationships, unique operational methods, or specialized service delivery approaches.
Suggested Sections

1. Parties: Identification of all parties involved in the agreement, including full legal names and addresses

2. Background: Context of the agreement, including the non-profit nature of the arrangement

3. Definitions: Key terms used throughout the agreement

4. Scope of Non-Compete: Detailed description of prohibited activities and sectors

5. Duration: Time period for which the non-compete obligations apply

6. Geographic Scope: Specific territories where restrictions apply

7. Consideration: Value exchanged for the non-compete commitment

8. Termination: Circumstances under which the agreement can be terminated

9. Governing Law: Specification of English and Welsh law as governing law

Optional Sections

1. Charitable Purpose Provisions: Required if either party is a registered charity - include when one or more parties are charitable organizations

2. Intellectual Property Rights: Protection of IP rights during and after the agreement - include when IP assets are involved

3. Confidentiality: Protection of sensitive information - include when confidential information will be shared

4. Assignment: Rights to transfer obligations to other parties - include when transfer rights need to be addressed

Suggested Schedules

1. Schedule 1 - Restricted Activities: Detailed list of specific activities prohibited under the agreement

2. Schedule 2 - Geographic Territories: Detailed maps or descriptions of restricted geographic areas

3. Schedule 3 - Excluded Activities: Activities specifically permitted despite non-compete provisions

4. Appendix A - Relevant Market Analysis: Supporting documentation justifying scope of 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

Competition Act 1998: Primary UK legislation governing competition law, relevant for ensuring non-compete provisions do not breach competition regulations

Enterprise Act 2002: Legislation dealing with competition and consumer protection, important for structuring non-compete terms

Article 101 TFEU: Retained EU law post-Brexit dealing with anti-competitive agreements, crucial for ensuring compliance with competition principles

Employment Rights Act 1996: Key employment legislation that must be considered when drafting terms affecting employment relationships

Equality Act 2010: Ensures non-discrimination and equal treatment in agreements affecting individuals or organizations

Common Law Restraint of Trade: Legal doctrine requiring non-compete restrictions to be reasonable and necessary to protect legitimate business interests

Charities Act 2011: Primary legislation governing charities and non-profit organizations in England and Wales

Charities Protection and Social Investment Act 2016: Additional regulations for charitable organizations, relevant when non-profits are involved

Unfair Contract Terms Act 1977: Regulates unfair terms in contracts, ensuring reasonableness of contractual restrictions

Consumer Rights Act 2015: May be relevant if the non-compete agreement affects consumer-facing activities of non-profit organizations

Reasonableness Requirement: Legal principle requiring non-compete clauses to be reasonable in scope, duration, and geographic area

Public Interest Consideration: Special requirements for non-profit sector ensuring agreements serve public benefit and charitable purposes

Enforceability Rules: Legal requirements for clear terms, adequate consideration, and protection of legitimate business interests

Duration Restrictions: Legal principles governing reasonable time limitations for non-compete provisions

Geographic Scope Limitations: Requirements for reasonable and specific geographical restrictions related to actual area of operation

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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