Getting shirty over non compete restrictions: Lessons from Tom James UK Ltd v Potter
Non-compete clauses are often seen as one of the strongest ways for employers to protect their business. But the recent High Court decision in Tom James UK Ltd v Potter shows the risks of using them too broadly and why restrictions must be tailored to each employee.
What are non-compete restrictions?
Non-compete clauses stop an employee from joining a competing business for a set period after they leave. Courts will only enforce these clauses:
- If they protect a legitimate business interest (such as client relationships, confidential information or goodwill); and
- Go no further than necessary to provide that protection
Background to the case
Mr Potter worked as a junior salesperson for Tom James UK, a business selling made to measure suits and shirts. He was employed from 2017 to 2025 and subject to a 12 month non-compete restriction.
The clause said he could not be “involved in any capacity” with any business competing or planning to compete with his employer. It had no geographical limit and no link to the actual work he carried out.
After Mr Potter resigned, the Employer suspected he planned to set up in competition and take clients with him. They sought to enforce the non-compete restriction. Mr Potter denied this and argued the clause was unenforceable given his junior role and limited access to confidential information.
The Court’s decision
The Court agreed with Mr Potter and found the non-compete restriction unenforceable for two key reasons.
The 12 month restriction applied to every employee, from senior leaders to junior sales staff. The Court said this “one size fits all” approach made no sense, as senior staff are far more exposed to sensitive information.
The Employer also doubled Mr Potter’s notice period (from six to twelve months) in 2022 without offering anything in return, which weakened its position further.
The clause stopped Mr Potter from joining a competitor in any role. The Court considered this disproportionate, noting that it would prevent him from working as a receptionist, driver or even warehouse staff—roles bearing no connection to his sales position.
The restriction should have been limited to similar roles involving similar risks. Tom James couldn’t show that such a wide clause was necessary.
Ultimately, the employer failed to prove that the length and breadth of the clause were required to protect its legitimate business interests.
What does this mean for employers?
This case is a clear reminder that non‑compete clauses must be carefully tailored. Employers should make sure:
- Restrictions reflect the employee’s seniority, responsibilities and access to sensitive information
- Clauses are tightly drafted and no wider than necessary
- Any changes that make restrictions more onerous are clearly explained and supported by proper consideration
Well‑drafted, customised non‑compete clauses can still provide strong protection. But overly broad or generic restrictions risk falling at the first hurdle.
For further information about this topic please get in touch with the authors Rebecca Sawbridge and Josh Middleton.
The content of this page is a summary of the law in force at the date of publication and is not exhaustive, nor does it contain definitive advice. Specialist legal advice should be sought in relation to any queries that may arise.
Related expertise
Law Firm of the Year
We are proud to have been named Law Firm of the Year at the prestigious Legal Business Awards 2024!
Legal Business is the market-leading monthly magazine for the UK and global legal market. Its readership spans the UK, Europe, Asia and the US, and the awards celebrate the very best in the legal profession.
This win is absolute recognition for all the hard work across the firm over the past year.
Contact us today
Whatever your legal needs, our wide ranging expertise is here to support you and your business, so let’s start your legal journey today and get you in touch with the right lawyer to get you started.
Get in touch
For general enquiries, please complete this form and we will direct your message to the most appropriate person.