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non-compete agreement template saas uk

Non-Compete Agreement Template for UK SaaS

If you're running a UK SaaS business and need a non-compete agreement template, the generic versions floating around online are likely to cause you problems. A non-compete agreement template for SaaS UK needs to reflect how software businesses actually work — subscription models, remote teams, IP built collaboratively, and competitors who operate across borders. UK courts apply a strict reasonableness test to restrictive covenants. If your clause is too broad in scope, geography, or duration, it won't be enforced. That's not a technicality — it's a real risk if a co-founder leaves and joins a direct competitor, or a senior engineer takes your product roadmap with them. This page covers what a properly structured non-compete looks like for a UK SaaS context, what Atornee generates for you, and when you genuinely need a solicitor to review it. We're not going to oversell what a template can do, but we will help you get something legally grounded in place quickly.

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Why this matters

Most UK SaaS founders reach for a non-compete agreement after something has already gone wrong — a key hire leaves, a co-founder splits, or a contractor starts building something suspiciously similar. The other common mistake is copying a US-style non-compete, which is largely unenforceable in the UK. UK law requires restrictive covenants to be reasonable and proportionate. A clause that bans someone from working in 'the software industry for two years globally' will be struck out entirely. SaaS businesses also have specific exposure points: proprietary algorithms, customer data, pricing models, and pipeline intelligence. A generic template won't address any of that with the specificity UK courts expect.

The Atornee approach

Atornee generates a non-compete agreement built around UK contract law principles, not a recycled US template. You answer questions about your business — the role being restricted, the geographic market you actually operate in, the duration you can justify, and what confidential assets you're protecting. The output reflects those specifics. It's not a one-size document. For SaaS businesses, Atornee also prompts you to consider IP assignment and confidentiality clauses alongside the non-compete, because courts look at the full picture of what you're protecting and why. You get a working draft in minutes, not days, and the document flags where a solicitor review is advisable before you ask someone to sign.

What you get

A UK-law-compliant non-compete agreement drafted around your specific SaaS business context, not a generic template
Scope, duration, and geography clauses calibrated to what UK courts are likely to uphold for your role type
Guidance on pairing the non-compete with confidentiality and IP assignment clauses for full protection
Plain-English explanations of each clause so you understand what you're asking someone to sign
Clear flags indicating where solicitor review is recommended before execution

Before you sign checklist

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1. Define exactly who you're restricting — employee, contractor, co-founder, or advisor — as the legal treatment differs
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2. Identify the specific confidential assets or competitive advantage you're protecting, not just 'our business generally'
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3. Map your actual geographic market — UK only, EU, global — and be honest about where you genuinely compete
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4. Decide on a realistic restriction period: 6–12 months is typically defensible for senior SaaS roles; longer needs strong justification
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5. Check whether you need a standalone non-compete or whether it should sit inside an employment contract or shareholder agreement
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6. Use Atornee to generate the draft, then review the flagged clauses before sending to the other party
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7. If the person being restricted is a co-founder or senior executive, get a solicitor to review the final document before signing

FAQ

Are non-compete agreements enforceable in the UK?

Yes, but only if they pass a reasonableness test. UK courts will not enforce a non-compete that is wider than necessary to protect a legitimate business interest. That means the scope of restricted activities, the geographic area, and the duration all need to be proportionate to what you're actually protecting. Overly broad clauses are struck out entirely — the court won't rewrite them to make them enforceable.

What's a reasonable non-compete duration for a SaaS business in the UK?

For most SaaS roles, 6 to 12 months is the defensible range. Senior roles with access to strategic roadmaps, customer data, or pricing models might support up to 12 months. Anything beyond that needs a strong factual justification. Two-year restrictions are rarely upheld in UK employment contexts unless the individual had genuinely exceptional access to trade secrets.

Can I use a US non-compete template for my UK SaaS company?

No. US non-compete law is entirely different from UK law, and in some US states non-competes are banned outright. UK courts apply their own reasonableness test under common law principles. A US-style template is likely to include clauses that are unenforceable in the UK and may omit protections that UK courts expect to see. Always use a UK-specific document.

Does a non-compete need to be a separate document or can it sit inside another contract?

It can sit inside an employment contract, a shareholder agreement, or a consultancy agreement as a restrictive covenant clause. A standalone non-compete agreement is typically used when you need to add restrictions after the initial contract was signed, or when dealing with advisors and contractors who don't have a broader agreement in place. The legal requirements are the same either way.

What's the difference between a non-compete and an NDA for a SaaS business?

An NDA (non-disclosure agreement) restricts someone from sharing your confidential information. A non-compete restricts them from working for competitors or starting a competing business. They protect different things and you often need both. For SaaS businesses, an NDA alone won't stop a departing engineer from joining a direct competitor and using their general knowledge of your approach — that's where a non-compete adds protection.

When should I get a solicitor to review my non-compete rather than using a template?

If the person being restricted is a co-founder, a C-suite hire, or someone with access to genuinely sensitive IP or customer relationships, get a solicitor to review it. The same applies if you're trying to enforce an existing non-compete — that's litigation territory and not something a template helps with. For standard senior hires and contractors, a well-drafted template reviewed by you is a reasonable starting point.

Related Atornee Guides

Cheap Contract Solicitor Alternative (UK)

Useful if you want to understand when to use Atornee versus instructing a solicitor for your contract workflow.

Cheap Solicitor for NDA (UK)

Non-competes and NDAs often need to work together — this covers the confidentiality side.

Atornee Use Cases

See how UK SaaS founders and other business types use Atornee across different legal workflows.

External References

GOV.UK Business and Self-employed

Official UK government guidance on business operations and employment obligations.

UK Legislation

Primary statutory reference for UK contract law and employment legislation underpinning restrictive covenants.

ICO Guidance for Organisations

Relevant where non-compete agreements intersect with handling of personal data and customer information.

Trust & Verification Policy

Authored By

A

Atornee Editorial Team

UK Contract Research

Reviewed By

C

Compliance Review Desk

UK Business Legal Content QA

Last reviewed on 3/4/2026

"This content is based on analysis of UK case law on restrictive covenants and common drafting patterns used in UK SaaS employment and contractor agreements. It reflects practical patterns observed across UK technology businesses navigating post-employment restrictions."

References & Sources