Is My Non-Compete Clause Enforceable? UK Law Explained
Non-compete clauses are common in UK employment contracts — but many are unenforceable. Here's how to tell whether yours would hold up in court, and what you can do about it.
Being dismissed from your job doesn't automatically mean you were dismissed unfairly. But if it was unfair, UK law gives you the right to challenge it. Here's how.
Losing your job is difficult enough. Finding out you may have been dismissed unfairly makes it worse — and many employees don't know whether they have a claim, or where to start.
Here's a straightforward guide to unfair dismissal law in the UK.
Unfair dismissal is a statutory right under the Employment Rights Act 1996. It protects employees from being dismissed without a fair reason and without a fair procedure.
Note the word "employees" — this right applies to employees only, not workers or the self-employed. And it generally requires two years of continuous employment with the same employer before you can bring a claim.
There are exceptions: certain dismissals are automatically unfair from day one, regardless of length of service (more on these below).
For a dismissal to be fair, two things must be true:
1. There must be a potentially fair reason
The Employment Rights Act sets out five potentially fair reasons for dismissal:
2. The employer must have acted reasonably
Even with a fair reason, the employer must follow a reasonable procedure. For conduct dismissals, this typically means:
If your employer rushed the process, ignored evidence, or dismissed you without giving you a fair hearing, the dismissal may be unfair even if there was a valid underlying reason.
Some dismissals are automatically unfair — you don't need two years' service and the employer has no defence, regardless of reason or process.
These include dismissal for:
If your dismissal falls into one of these categories, you can bring a claim from day one of employment.
Upload any UK legal document and get an instant AI breakdown — clause by clause, risk by risk, in plain English.
If your claim succeeds, the Employment Tribunal can award:
Basic award Calculated in the same way as statutory redundancy pay — based on age, years of service, and weekly pay (capped at £643 per week as of April 2024). Maximum 20 years' service counts.
Compensatory award Covers your actual financial loss — lost earnings from dismissal to the tribunal hearing, and projected future losses if you're still out of work or earning less. The compensatory award is capped at the lower of £115,115 or 52 weeks' pay (as of April 2024).
In cases of automatically unfair dismissal (such as whistleblowing or pregnancy), the cap on the compensatory award does not apply.
Reinstatement or re-engagement You can ask to be given your job back. Tribunals can order this, though in practice it is rare.
Step 1: ACAS Early Conciliation Before you can submit a tribunal claim, you must first contact ACAS to start Early Conciliation. This is a free, confidential process where ACAS tries to help both sides reach a settlement without going to tribunal. It's mandatory — you cannot skip it.
Step 2: Employment Tribunal claim If conciliation fails, you can submit an ET1 claim form online at gov.uk/employment-tribunals. The time limit is three months less one day from the date of dismissal (this is strict — missing it usually means losing your right to claim).
Step 3: The hearing Most unfair dismissal cases are heard by a panel of three: a legally qualified Employment Judge plus two lay members (one with employer-side experience, one with employee-side). You can represent yourself, use a trade union representative, or instruct a solicitor.
Many unfair dismissal cases settle before reaching a hearing. Your employer may offer a settlement agreement — a contract where you waive your right to bring employment tribunal claims in exchange for a payment. You must receive independent legal advice on a settlement agreement for it to be legally binding, and the adviser's fees are typically paid by your employer.
Don't feel pressured to accept the first offer. Once you've filed an ET1 claim, your negotiating position often improves.
Disclaimer: This article is for general information only and does not constitute legal advice. For advice specific to your circumstances, contact ACAS (acas.org.uk), Citizens Advice, or an employment solicitor. Time limits in employment law are strict — seek advice promptly.
Upload any UK legal document and get an instant AI breakdown — clause by clause, risk by risk, in plain English.
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