Non Compete Without Compensation
Description
How to fill out Sample Noncompete Clauses?
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FAQ
New three-month limit on non-compete clauses. In its policy paper, titled 'Smarter regulation to grow the economy', the government has announced plans to cap the length of non-compete clauses in employment contracts to three months. Currently, these clauses can be quite lengthy, sometimes lasting beyond 12 months.
Non-compete clause is prohibited under the Law of Contracts. Section 27 of the Contract Act provides ? 'Every agreement by which anyone is restrained from exercising a lawful profession or trade or business of any kind, is to that extent void'.
Look in your contract or terms and conditions of work for wording like 'You can't work for a competing business if it's less than 10 miles away'. It should also say how long the restriction lasts - usually 3 to 6 months.
Another way to defeat a non-compete contract is to show that your employer has behaved illegally or unethically towards their clients. In general, an employer will not want these matters raised in a court case, so they may void your non-compete agreement if you have proof of these behaviors.
Unlike some jurisdictions, the UK permits non-competes without the need for any payment of compensation to be made to the employee during the period for which they are restrained from working.
