This clause stops you from working for competitors in a specific geographic area after you leave the job. For example, it might say you cannot work for a rival company within 50 miles of the office for two years. Courts in both the UK and US will only enforce these restrictions if they are "reasonable"—meaning the area cannot be so large that it effectively prevents you from working anywhere. The geography must match the actual business territory where the company operates, not an arbitrary huge radius. If the restriction is too broad, a court will simply refuse to enforce it, making the clause worthless.
Negotiate the geographic radius down to match only the areas where the company actually does business. Ask for a map or list of specific territories. If the company operates in three cities, don't accept a 100-mile radius that covers ten cities where they have no presence. Push back hard on this—it directly affects where you can earn a living after leaving. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause stops you from working for competitors in a specific geographic area after you leave the job.
Why should I care about this clause?
For example, it might say you cannot work for a rival company within 50 miles of the office for two years.
What are my options?
Courts in both the UK and US will only enforce these restrictions if they are "reasonable"—meaning the area cannot be so large that it effectively prevents you from working anywhere.
How does this affect small businesses?
The geography must match the actual business territory where the company operates, not an arbitrary huge radius.