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What to do if…
you are presented with a new non-compete or restrictive covenant after you resign

Produced and maintained by PanicStation.org Published: Last reviewed: Editorial policy UK guide

Short answer

Do not sign or agree to the new restriction on the spot. Take a copy away, keep your response in writing, and get UK employment advice before you accept any new limit on your next job or business plans.

Do not do these things

  • Do not sign “just to get it done” or because someone says it is routine.
  • Do not reply with “I agree”, “fine with me”, or similar wording if you have not decided.
  • Do not disclose your new employer, start date, client list, or role details under pressure before you have reviewed what you are being asked to sign.
  • Do not assume the restriction is enforceable just because HR, a manager, or a lawyer has sent it.
  • Do not let pressure about references, final pay, holiday pay, or your leaving date push you into signing new terms.
  • If it is a settlement agreement, do not sign until you have had independent advice from a relevant insured adviser.

What to do now

  1. Create a pause and take the document away.
    Say: “I can’t sign new legal terms immediately. Please email me the full document and I’ll respond after I’ve reviewed it.”

  2. Ask in writing what the document is.
    Send one short message: “Please confirm whether this is a new contract variation, a settlement agreement, or a standalone restrictive covenant, and why it is being requested after my resignation.”

  3. Make clear that you are not agreeing today.
    Reply neutrally: “I’m reviewing this. As this appears to introduce new terms, I’m not agreeing today. Please confirm what terms you believe currently apply until my leaving date.”

  4. Compare it with what you already signed.
    Find your employment contract, offer letter, handbook terms that say they are contractual, and any later amendments. List what already exists and what is new, especially any non-compete, non-solicitation, non-dealing, confidentiality, garden leave, client, geography, duration, or competitor wording.

  5. Ask what is being offered for the new restriction.
    If they want extra restrictions after you have resigned, ask: “What is being offered in exchange for these additional restrictions, such as a payment, agreed exit package, agreed reference, or other benefit?” Keep the answer for your adviser.

  6. If it is a settlement agreement, treat it as separate.
    Ask for the full settlement terms, including payments, tax wording, reference wording, confidentiality, restrictions, waiver of claims, and adviser contribution. Do not sign until you have independent advice.

  7. If final pay, holiday pay, or a reference is mentioned, ask for clarity in writing.
    Reply once, calmly: “Please confirm in writing that my final pay and any holiday pay will be processed in the usual way and are not conditional on signing new terms.” Save the response.

  8. Get UK employment help before you respond further.
    Use Acas, your union, or an employment solicitor. This is especially important if the wording could block your next role, your employer is threatening court action, or money is being offered for signing.

What can wait

  • You do not need to decide today whether to delay your new start date.
  • You do not need to disclose your new employer or detailed plans while you are reviewing the document.
  • You do not need to negotiate perfect wording yet; first, identify what is new and what you already agreed to.
  • You do not need to debate enforceability with HR. You can simply say you are taking advice.
  • You do not need to decide whether to change industry, role, clients, or location while you are still at the first-step stage.

Important reassurance

Being handed a new non-compete or restrictive covenant after you resign can feel alarming, but you do not have to decide immediately. In the UK, non-compete wording may be enforceable only if the employer can show it is reasonable and protects a proper business interest, so the safest first move is to pause, avoid accidental agreement, and get advice.

Scope note

These are first steps only, focused on preventing an irreversible mistake and buying time. Later decisions about enforceability, negotiation, court risk, settlement terms, or your next role may need specialist employment-law help.

Important note

This is general information, not legal, financial, tax, employment, or professional advice. Employment terms and restrictive covenants are fact-specific, so get independent advice before signing anything that could affect your ability to work or receive money.

Additional Resources

Closely connected guides that may be useful during the same situation or its immediate aftermath.

About this guide

This guide was produced and is maintained by PanicStation.org using its published editorial process. Official and specialist sources are checked where relevant, and AI-assisted tools may be used for drafting, organisation, and consistency checks. The site operator remains responsible for publication, revision, and removal decisions.

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