Employment Non-Compete Clause
The client, located in England, is facing an issue with a non-compete clause in their employment contract. This clause restricts the client from working with sponsors or suppliers in the motorsport industry for a period of three months. The client perceives this clause as unreasonable and potentially unenforceable. The primary concern is the broad scope of the restriction, which significantly limits their ability to work in their field. The client seeks clarification on whether such a clause is enforceable under current employment contract laws in England.
Questions about this case
These answers have been verified by a lawyer in the LEAP networkIs the non-compete clause in my contract enforceable under English law?
Under English law, a non-compete clause must be reasonable in scope, duration, and geographical area to be enforceable. For your clause, which restricts engaging with sponsors or suppliers in the motorsport industry for three months, its enforceability depends on whether it protects legitimate business interests and is proportionate.
What factors does the court consider when determining the reasonableness of a non-compete clause?
The court considers several factors when assessing the reasonableness of a non-compete clause under English law. These include the geographic scope, the duration of the restriction, and the nature of the business interests protected by the clause.
What potential legal remedies or negotiations are available if my non-compete clause is deemed too restrictive?
If a non-compete clause is deemed too restrictive, you might negotiate an amendment to the agreement with your employer, aiming to narrow the scope of restrictions. Alternatively, you could seek a declaratory judgment from the courts asserting that the clause is unenforceable due to its unreasonableness.
Can a non-compete restrict an apprentice this much?
In England, non-compete clauses for apprentices are scrutinized closely. A clause that prevents working in an entire industry may be seen as disproportionate. Courts generally consider such clauses unreasonable for apprentices because of the emphasis on training and career development.
