Non compete Clause

legal updates

The Government is currently asking for a call of evidence regarding the non compete clause.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

In many employment contracts, the employer will insist on the need for restrictive covenants, these may include non dealing and non compete clauses. These generally play a greater role post termination.

Very briefly, these breakdown as below:

•    non-competition covenants – restricts the employee from working in similar employment for a competitor;

•    non-solicitation covenants – prevents poaching of clients/customers/suppliers;

•    non-dealing covenants – prevents a former employee from dealing with former clients/customers/suppliers, regardless of who approached who;

•    non-poaching covenants –prevents an employee poaching former colleagues.

In practice, these are enforceable if they are reasonable such as, how far away is the competitor? If it’s on your door step then this is likely to be more enforceable then a company of the same nature 100 miles away. 

The Government is currently asking for a call of evidence regarding the non compete clause. At the moment, the clauses are only enforceable in a court of law if the clause protects a legitimate interest and is reasonable. But, there is suggestions that they can cause issues with the hiring of new employees. Therefore, the government is asking for views from individuals and employers on whether this is the case.

You can find the link below:

https://bisgovuk.citizenspace.com/innovation/national-innovation-plan/consultation/intro/view

Connected Car FinanceReady to take the connected approach?

We’re here to ensure all used car dealerships deliver a better car finance experience for their customers. With over 4,000 approved dealer partners we ensure you are properly supported and connected with a range of flexible finance options, allowing you to lend and your customers to buy in complete confidence.

Roxanne BradleyLegal AdvisorRead More by this author

Related Legal Updates

Extension of Redundancy Protection for Pregnancy and New Parents

Explore the strengthened redundancy protections for new parents with significant amendments to maternity, adoption, and shared parental leave rights, effective from April 2024, ensuring enhanced job security during critical family milestones.

Wages increasing from 1 April 2024

With effect from 1 April 2024, the hourly rates of pay are…

Employment Law: Carer’s Leave

The regulations explicitly safeguard employees from any detriment or dismissal resulting from taking or seeking to take carer’s leave.

Employment Law: Annual Leave Changes

Several significant changes came into force on 1 January 2024 that affect the statutory annual leave and pay entitlements.

The office Christmas party season is here

Where an employee makes comments concerning a person’s body parts or style of dress that are intended to be good-natured but are perceived as offensive…

Update on Rights to Flexible Working Requests

Employers will remain entitled to turn down a request pointing to reasonable grounds as a basis for refusal.

Three new employment laws for 2024

The Carers Leave Act, The Neonatal Care (Leave and Pay) Act and The Protection from Redundancy (Pregnancy and Family Leave) Act.

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.