A non-compete clause stops you working for a competitor, or setting up in competition, for a set time after you leave. UK courts enforce one only when the clause protects a legitimate business interest and is no wider than reasonably necessary in time, area and activity. The government consulted on limiting non-competes in 2025 and 2026, but as of 10 October 2026 the law has not changed.
Key facts
- Legal test
- Legitimate business interest, and no wider than reasonably necessary
- Who must prove the clause is reasonable
- The employer
- Reform status
- Working paper published 26 November 2025, views closed 18 February 2026, no decision announced
- Options discussed
- A statutory length limit, an outright ban, or a ban below a salary threshold
- Earlier plan
- A 3 month limit announced in May 2023 was never made law
What a non-compete clause looks like
A typical clause says you must not, for a number of months after leaving, "be engaged or concerned in" a business which competes with the employer within a set distance of your workplace. Healthcare versions often name pharmacies, clinics or practices within a radius in miles. Some name every branch you worked at in the last year, which widens the area a great deal for staff who cover several sites.
Read the defined terms at the start of the contract. Words such as "Restricted Business", "Restricted Area" and "Relevant Period" decide what the clause covers.
When a court enforces one
A non-compete clause is harder for an employer to defend than a non-solicitation or non-dealing clause, because the clause stops all competing work rather than contact with named people. Courts tend to ask whether a narrower clause would have protected the business. Factors include:
- your seniority and access to confidential information, such as NHS contract terms or pricing
- how long the confidential information stays useful
- whether the radius matches where your patients live
- whether the clause blocks clinical roles unrelated to your old job
- whether the employer paid anything extra for the restriction
The Acas guide to terms restricting a worker's actions (opens another website) says employers will not usually be able to enforce covenants unless they are clear, specific and time-restricted. For the general rules shared by every covenant, read restrictive covenants.
A pharmacy example
Say a pharmacist manager's contract bans work at any pharmacy within 5 miles of "any branch of the Company" for 12 months. The company runs 40 branches across a county. The pharmacist plans to take a locum shift at a hospital pharmacy 3 miles away. An adviser would likely ask whether a hospital dispensary competes with a community chain at all, and whether a county-wide ban protects more than the manager's own patient base. The answer depends on the facts, so the pharmacist books advice before accepting the shifts.
Where reform stands
On 26 November 2025, the government published a working paper on options for reform (opens another website). The paper discussed:
- a statutory limit on length, with 3 months as the main example
- an outright ban on non-competes in employment contracts
- a ban for workers earning below a salary threshold
- a mix of a salary threshold ban with a length limit for higher earners
Views closed on 18 February 2026. The government has not announced a decision or published a bill. These are proposals, not law. The paper also confirms a 3 month limit announced by the previous government on 10 May 2023 never went ahead. Until any new law starts, the common law test above applies.
Before you sign a new contract
- Ask for the clause in writing before you resign from your current job.
- Ask the employer to cut the length, shrink the area to your own site, or limit the activity to your actual role.
- Ask for any change in a signed letter or a new contract version.
- Check the clause does not restart when you change role or site.
See contract review for the full checklist.
If you receive a warning letter
Former employers sometimes write to remind you of a covenant, or to your new employer. Do not ignore the letter, and do not reply in detail without advice. Keep the letter, note the date of arrival and any deadline, and book advice. Some disputes move to court quickly, and an injunction can stop you working while the case runs.
Questions to ask an adviser
- Which legitimate interest does the employer rely on for my role?
- Would a non-solicitation clause alone have protected the business?
- Does the restricted area include every branch or only my own?
- Does my new job count as "competing" under the defined terms?
- Did my notice period or garden leave reduce the restriction?
Where to get advice
- An employment solicitor: for a view on enforceability and a reply to any letter.
- Your union or professional body: the PDA (opens another website) for pharmacists, the BMA (opens another website) for doctors, the RCN (opens another website) for nurses.
- Acas: 0300 123 1100, weekdays 8am to 6pm.
- Citizens Advice: free general help with contract problems.
- Northern Ireland: Labour Relations Agency, 03300 555 300.
Common questions
Are non-compete clauses legal in the UK?
Yes, but a court only enforces one where the clause protects a legitimate business interest and goes no further than reasonably necessary.
Has the UK limited non-competes to 3 months?
No. A 3 month limit was announced in 2023 but never made law. A 2025 working paper discussed new options, and no decision has been announced as of 10 October 2026.
Can a non-compete stop me doing locum work?
The clause can only stop work the wording covers and a court finds reasonable. Check the defined terms and get advice before taking shifts near your old employer.
What happens if I break a non-compete?
The former employer may seek an injunction to stop the work, and may claim damages. Get advice early if you receive a letter.
