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Lifetime Non Compete Agreement Template for England and Wales

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Key Requirements PROMPT example:

Lifetime Non Compete Agreement

"I need a Lifetime Non Compete Agreement for my departing CTO who has extensive knowledge of our proprietary AI technology and client relationships; the agreement should be particularly focused on protecting our intellectual property and preventing them from working with our direct competitors in the UK and EU markets."

Document background
A Lifetime Non Compete Agreement is utilized when a business seeks to protect its legitimate interests by preventing an individual from engaging in competitive activities indefinitely. Under English and Welsh law, while such agreements can be drafted, courts generally view lifetime restrictions as unenforceable unless exceptional circumstances exist. The document typically includes detailed provisions about restricted activities, territorial scope, and consideration, though enforceability typically requires reasonable limitations in duration and scope. These agreements are most commonly used for senior executives, key employees with access to sensitive information, or in business sale contexts.
Suggested Sections

1. Parties: Identification and details of the contracting parties

2. Background: Context and circumstances leading to the agreement

3. Definitions: Key terms used throughout the agreement

4. Scope of Restrictions: Detailed description of prohibited activities

5. Duration: Time period of restrictions (noting enforceability issues)

6. Geographic Scope: Territorial limitations of the restrictions

7. Consideration: Value provided in exchange for the restrictions

8. Governing Law: Specification of applicable law and jurisdiction

Optional Sections

1. Confidentiality Obligations: Additional provisions regarding protection of confidential information, used when specific confidential information needs protection

2. Garden Leave Provisions: Terms regarding paid leave during notice period, used when agreement relates to employment termination

3. Severability: Provisions for partial enforcement if parts are deemed invalid, used when agreement covers multiple restrictions

Suggested Schedules

1. Schedule of Restricted Activities: Detailed list of specific activities covered by restrictions

2. Schedule of Restricted Territories: Detailed list of geographic areas covered by restrictions

3. Schedule of Consideration: Details of compensation or benefits provided

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 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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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Common Law Restraint of Trade Doctrine: Fundamental legal principle that views restraints on trade as void unless they are reasonable in scope, protect a legitimate business interest, and not against public policy

Competition Act 1998: Key legislation governing competition law in England and Wales, affecting restrictions on business activities and market competition

Enterprise Act 2002: Legislation that supplements competition law framework and provides additional provisions for business regulation

EU Retained Competition Law: Post-Brexit competition regulations retained from EU law that continue to influence UK competition policy

Employment Rights Act 1996: Primary legislation governing employment rights and responsibilities in England and Wales

Contracts of Employment Act: Legislation governing the formation and terms of employment contracts, including restrictive covenants

Trade Union and Labour Relations (Consolidation) Act 1992: Legislation governing labor relations and collective bargaining rights that may impact employment restrictions

Human Rights Act 1998: Incorporates European Convention on Human Rights into UK law, including rights that may affect non-compete restrictions

Article 8 ECHR: Right to private life under the European Convention on Human Rights, which may be relevant to employment restrictions

Article 11 ECHR: Freedom of association under the European Convention on Human Rights, which may affect employment restrictions

Enforceability Limitations: Legal principle that lifetime non-compete agreements are generally unenforceable in England and Wales, with courts typically only enforcing reasonable time-limited restrictions (6-12 months)

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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