can a non compete clause be legal forever in UK?

Question

contract states that I cant set up my ownb business, use there methods or work for a competitor

Answer 1

This is what is known as a restrictive covenant in your contract of employment (I assume yours is an employment contract and not a franchise agreement - if so, different rules apply)

The earlier answers are right, and ALL restrictive covenants are unlawful in the UK save insofar as they are necessary for the reasonable protection of your employer's legitimate business interests. [It's more complicated than that, but it's a working definition for the pusposes of this answer]

Any non-compete clause with no end-date will be struck down by the court without a murmur. The court will not insert or imply a 'reasonable period' - it is not the court's job to make the agreement for the parties, merely to apply it, or strike it down.

In which case, you're free to do what you like.
It hardly goes without saying but if you were comtemplating acting in the way forbidden under your contract, you need competent legal advice from someeone who is familiar with these clauses.

Answer 2

They cannot stop you from competing forever. There must be a reasonable period in the contract for it to stand up in court. That will vary by geographic location and industry. The case I remember from business law was the arms manufacturer who was barred from working anywhere in the world as an arms dealer for 20 years. The court upheld the worldwide bit (because of the nature of the arms industry) but threw out the 20 year bit.

I think the prohibition on using their methods (if they are proprietary) is more likely to be upheld in their favour.

Answer 3

i'm no longer an lawyer, yet i recognize that some non compete clauses would be overturned in the event that they are discovered to be over reaching or unreasonable. you will desire to touch an lawyer to work out what legal action desires to be taken. in case you purely flow forward and practice, they'd sue you for breaking the settlement. you're able to desire to get a prefer to overturn the clause till now you start up training back. 1st 2 issues I ever found out in corporation wrtr a million. under no circumstances sign something without interpreting thoroughly 2. under no circumstances sign something i do no longer aggree with

Answer 4

Generally, no. A non-compete clause must be reasonable for a court to enforce it.

While specific provisions might be permanent, an agreement that effectively prevents you from ever being able to work in the same field would be held unenforceable and unconscionable.

Laws vary by state/country, and I haven't check English precedents to determine exactly what restrictions can be permanent and where the "reasonable" lines get drawn.

Answer 5

No, it cannot be. There must be a time limit that is deemed "reasonable". For one, it would violate the Rule Against Perpetuities, even though it is not a Will.