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ARTICLE · 04 NOVEMBER 2024

Digital, Commerce & Creative 101: Do I Need A Non-Compete Obligation?

Lewis Silkin
Lewis Silkin
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Lewis Silkin

Lewis Silkin

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Non-compete clauses, restricting parties from competing with a business, can protect legitimate interests if they are reasonable and not overly restrictive. Under English law, enforceability depends on necessity, scope, and public interest.

United KingdomEmployment and HR
Jordan Quartey
Jordan Quartey
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Commonly referred to as exclusivity clauses, a non-compete obligation is often included in employment contracts whereby a contractual party may require another party to comply to protect its business interests.

What is a non-compete obligation?

A non-compete obligation is a contractual obligation restricting a party from carrying out certain activities (e.g. providing services or supplying products) that compete with the business of another party. These obligations are also commonly referred to as exclusivity clauses and fall within the wider remit of restrictive covenants and restraint of trade clauses (along with other contractual obligations such as non-solicitation, non-interference and non-dealing clauses).

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