A restrictive covenant limits what you can do after you leave a job. In UK law, a court will only enforce one if the covenant protects a legitimate business interest of the employer and goes no further than reasonably necessary to protect the interest. Signing the clause does not make the clause enforceable, and finding the clause unfair does not make the clause void.
Key facts
- Starting point
- Post-employment restrictions are void as a restraint of trade unless the employer shows they are reasonable
- Legitimate interests
- Usually confidential information, client or patient connections, and a stable workforce
- Reasonableness
- Judged on length, area and activities, as at the date the contract was made
- Acas view
- Employers will not usually enforce covenants unless they are clear, specific and time-restricted
- Reform
- The government consulted on limiting non-competes in a working paper published 26 November 2025. No change to the law has been announced.
The four main types
| Clause | What the clause stops | Read more |
|---|---|---|
| Non-compete | Working for a competitor or opening a competing business, often within an area and time | Non-compete clauses |
| Non-solicitation | Approaching former clients, customers or patients to win their business | Non-solicitation clauses |
| Non-dealing | Doing business with former clients or patients, even when they approach you | Non-dealing clauses |
| Non-poaching | Recruiting former colleagues to join you | Non-poaching clauses |
Confidentiality clauses sit alongside these and often last with no end date. They protect information, not customers. See NDAs in healthcare. Exclusivity clauses work during employment rather than after, and are covered on exclusivity clauses.
How courts decide
The law starts from the view people should be free to work. The employer must show two things. First, a legitimate business interest needs protection, such as patient lists, pricing information or close links with commissioners. Second, the restriction goes no further than reasonably necessary to protect the interest. The court looks at:
- Length: how many months the clause runs after you leave
- Area: the radius or region, and whether the area matches where you served patients
- Activities: whether the clause blocks all work or only the type you did
- Your role: a branch manager with access to contracts differs from a newly qualified practitioner
The court tests the clause as at the date you signed, not as the employer later uses the clause. Courts can sometimes remove an offending part of a covenant and enforce the rest, but they will not rewrite the clause. Time spent on garden leave may count against the length of a restriction. A serious breach of contract by the employer can release you from covenants, so ask your adviser about this if you resign because of the employer's conduct.
How covenants show up in healthcare
In pharmacy, covenants often name a radius around a branch and a number of months. In private clinics and GP practices, the clause may target patients you treated. In agencies, covenants may stop you taking work direct with a client hospital. Patients keep their own right to choose where they get care. A covenant binds you, not the patient.
Covenants also appear in self-employed locum and partnership agreements. Courts apply a reasonableness test in commercial contracts too, but the balance can differ from an employment case. Read locum contracts.
Reform of non-compete clauses
On 26 November 2025, the Department for Business and Trade published a working paper on reforming non-compete clauses (opens another website). Views closed on 18 February 2026. The paper discussed options such as a statutory limit on length, an outright ban, and a ban below a salary threshold. An earlier government announced a 3 month limit in May 2023, but no law followed. As of 10 October 2026, no decision or bill has been announced. The current law applies to every covenant in force today. The working paper covers non-compete clauses only, not non-solicitation or non-dealing clauses.
Steps before you move jobs
- Find the signed version of your contract and any later variation or promotion letter with new terms.
- List each covenant with its length, area and activity.
- Write down your new role, its location and any former patients or colleagues you expect to follow you.
- Get advice before you resign or accept the offer, not after a solicitor's letter arrives.
- Tell your new employer about the covenants if your adviser suggests doing so.
Questions to ask an adviser
- Which legitimate interest does each covenant protect in my case?
- Is the length and area wider than needed for my role?
- Does my garden leave count against the restriction?
- Did a later promotion or new contract replace the old covenants?
- What is the risk of an injunction, and what would a defence cost?
Where to get advice
- An employment solicitor: covenant disputes often turn on detail, and some move fast.
- Your union or professional body: the PDA (opens another website), BMA (opens another website) or RCN (opens another website) for members.
- Acas: 0300 123 1100 for free general employment advice.
- Citizens Advice: free first help. See Citizens Advice for work problems.
- Northern Ireland: Labour Relations Agency, 03300 555 300.
Common questions
Are restrictive covenants enforceable in the UK?
Only if the covenant protects a legitimate business interest and goes no further than reasonably necessary. Courts judge each clause on its own wording and facts.
Is the UK banning non-compete clauses?
Not as of 10 October 2026. The government published a working paper on reform in November 2025, but has not announced a decision or a bill.
Can my old employer stop me working at a pharmacy nearby?
Only if a non-compete clause in your contract is reasonable in length, area and scope for your role. Get advice on the exact wording before you accept the new job.
Do covenants apply if I was dismissed?
Usually yes, if the wording covers any ending of employment. A serious breach by the employer may release you, so ask an adviser.