Standard Restrictive Covenants For Commercial Contracts (Including Non-Compete, Non- Solicitation, No Poaching)

This legal template pertains to the inclusion of standard restrictive covenants within commercial contracts under UK law. Restrictive covenants are clauses designed to protect the interests of businesses by placing certain limitations on the actions of the parties involved. This template focuses on three specific types of restrictive covenants: non-compete, non-solicitation, and no poaching clauses.

The non-compete clause prohibits one party from engaging in or starting a business or employment that directly competes with the other party's business, within a specific geographic area and for a defined period of time. This aims to prevent unfair competition and safeguard the goodwill and trade secrets of the original business.

The non-solicitation clause prohibits one party from soliciting, enticing, or luring away customers, clients, employees, or suppliers of the other party with whom they have had business interactions. This clause aims to protect established business relationships and prevent the poaching of valuable resources.

The no poaching clause prevents one party from directly or indirectly recruiting or hiring employees of the other party, again with the intention of protecting the workforce, intellectual property, and overall stability of the original business.

This template serves as a starting point for drafting comprehensive and legally sound restrictive covenants in commercial contracts within the jurisdiction of the United Kingdom. It provides guidance on the specific language and provisions necessary for these types of covenants to be enforceable and outlines the general considerations and restrictions imposed by UK law in this area.