Sports Q&A: Non-Competes

Our Q&A looks at the government's proposal on non-competes and what sports businesses should be doing about this now.

Q. What is a non-compete?

A.  Broadly, a non-compete clause is a type of post-termination restriction (PTR) that prohibits an employee from working for a competitor, or setting up a competitive business, for a set amount of time after their current employment has ended.

Under current law in the UK, there isn't a fixed limit on the maximum duration of non-competes; however, non-compete clauses (and other PTRs) will only be enforceable if they are no wider than is reasonably necessary to protect the employer's “legitimate business interests”.

Global approaches to non-compete clauses vary significantly. In some jurisdictions, the use of non-competes is not prohibited at all. In other countries, employers are required to pay for non-competes. In the UK, employers are not currently required to pay for non-competes (and employers will not be