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Consulting Non Compete Agreement Template for England and Wales

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Key Requirements PROMPT example:

Consulting Non Compete Agreement

"I need a Consulting Non Compete Agreement for a senior technology consultant who will have access to our AI development roadmap, restricting them from working with competitors in the UK and EU for 12 months after their engagement ends in March 2025."

Document background
A Consulting Non Compete Agreement is essential when engaging consultants who will have access to sensitive business information or significant client relationships. This document, governed by English and Welsh law, establishes clear boundaries for post-engagement activities, protecting intellectual property, client relationships, and competitive advantage. It includes specific provisions on restricted activities, timeframes, geographic scope, and compensation, while ensuring compliance with UK competition law and reasonableness requirements. The agreement is particularly relevant for high-level consulting engagements where consultants gain intimate knowledge of business operations or strategic plans.
Suggested Sections

1. Parties: Identification and details of the contracting parties

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Scope of Restrictions: Detailed description of prohibited activities and non-compete obligations

5. Duration: Time period for which the non-compete restrictions will remain in effect

6. Geographic Scope: Territorial limits of the non-compete restrictions

7. Consideration: Value or compensation provided in exchange for the non-compete restrictions

8. Enforcement: Remedies and consequences for breach of the agreement

9. Governing Law: Specification of English and Welsh law as governing law and jurisdiction

Optional Sections

1. Garden Leave: Provisions for post-termination waiting period, typically used for senior consultants with significant client contact

2. Severability: Provisions allowing for partial enforcement if certain sections are found invalid

3. Assignment: Rights and restrictions regarding transfer of agreement obligations

Suggested Schedules

1. Schedule 1 - Restricted Clients: List of specific clients covered by non-compete provisions

2. Schedule 2 - Restricted Territory: Detailed mapping of geographic restrictions and territories

3. Schedule 3 - Confidential Information: Specific details of protected information and trade secrets

4. Schedule 4 - Consideration Schedule: Details of payments or benefits provided as consideration for the restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


























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Industries

Restraint of Trade Doctrine: Common law principle that determines the enforceability of restrictive covenants, requiring them to be reasonable and necessary to protect legitimate business interests

Competition Act 1998: Primary UK legislation governing competition law, which may impact the scope and enforceability of non-compete restrictions

Enterprise Act 2002: Legislation that strengthens UK competition law and may affect the validity of certain restrictive covenants

Article 101 TFEU: Retained EU law post-Brexit that prohibits anti-competitive agreements, which must be considered when drafting non-compete clauses

Employment Rights Act 1996: Key legislation for distinguishing between employment and consultancy status, crucial for determining the appropriate scope of restrictions

IR35 Legislation: Tax legislation that determines contractor status and may influence how the consulting relationship is structured

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce contractual terms, relevant for extending non-compete protection to related entities

Unfair Contract Terms Act 1977: Legislation that may limit the enforceability of unreasonable or unfair contract terms in non-compete agreements

Misrepresentation Act 1967: Relevant for ensuring truthful representations in the agreement and remedies for false statements

Trade Secrets (Enforcement, etc.) Regulations 2018: Legislation protecting trade secrets, which often forms part of the legitimate business interest justifying non-compete restrictions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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