Question

Are non-compete clauses actually enforceable?

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Answer

Sometimes — but they start from a position of being void as a restraint of trade, and are enforceable only where the employer can show they go no further than reasonably necessary to protect a legitimate business interest. The burden sits on the employer, which is the opposite of what most people assume.

The legal starting point. Courts treat restrictions on someone's ability to earn a living as contrary to public policy and therefore unenforceable unless justified. Justification requires:

A legitimate protectable interest — trade secrets and confidential information, customer connections, or workforce stability. Protection from ordinary competition is not a legitimate interest, and this is where most clauses fail.

Reasonableness in scope — duration, geographic area and the range of activity restricted must each be no wider than necessary.

Reasonableness at the time of signing, not at the time of enforcement.

What makes a clause fail:

Excessive duration. For junior roles, anything long is very difficult to justify.

Unlimited geography, where the business operates locally.

Blanket application of the same clause to everyone regardless of role — a strong indicator that it was not tailored to a real interest.

Restricting the whole industry rather than the specific competitive activity.

Being imposed without consideration during employment, without something given in return.

The related clauses, which are easier to enforce and frequently more useful to an employer: non-solicitation of clients, non-dealing with clients, non-poaching of staff, and confidentiality obligations. A court will more readily uphold a narrow non-solicitation clause than a broad non-compete.

Severance and blue-pencilling. Courts can sometimes delete an offending part of a clause, but cannot rewrite it to make it reasonable — so an overreaching clause frequently falls entirely, which is why drafting them too aggressively is self-defeating.

Garden leave is the practical alternative, keeping someone employed and paid while away from clients.

Reform has been proposed in several jurisdictions, including statutory caps on duration. General information, not legal advice.

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