A Non-Compete Clause is a clause in a contract which prevents you from working with competitive businesses to your client for a period of time.
This may be included in a contract you’ve been provided by your client.
Non-compete clauses can be problematic if they restrict your ability to work, but providing their scope is reasonable, they are generally acceptable.
Non-compete clauses might ask you to not work with any competitive businesses to your direct client for the duration of your contract working with your client.
Sometimes, non-compete clauses might ask you to not work with any competitive businesses to your direct client for a period of time after your contract ends.
Consider carefully what this means for you, and your ability to work.
For instance, if you’re a designer who freelances for marketing agencies, if the non-compete clause restricts you from working with any other marketing agencies for 12 months after your contract ends, this is effectively preventing you from working.
Your clients are generally not allowed to restrict your ability to work - “Restraint of trade” is a core principle of contract law, which means that every person has the right to trade freely and on their own terms.
The UK government (as of Spring 2024) is currently considering capping non-compete clauses at 3 months - although this is not yet law, it could provide a good benchmark as what is reasonable.
In practise, broadly defined non-compete clauses may not be enforceable, however, it is always better to not sign an agreement which restricts your ability to work, rather than rely upon it not being enforceable.
You can always ask your client to amend clauses to make the scope more specific, or to remove the clause altogether, if you feel it is unreasonable. If they tell you they won’t enforce a clause, get it in writing.
Always seek legal advice if you’re unsure what a contract is asking you to agree to.