Non-Compete Clauses in Freelance Contracts: What UK Freelancers Need to Know

You've just received what looks like a great contract offer. Good rate, interesting project, reputable client. Then you scroll down and see it: "The Contractor agrees not to provide services to any competitor of the Client for a period of 12 months following termination of this Agreement."

Should you sign? Could this actually stop you from working? And what counts as a "competitor" anyway? Let's break down everything UK freelancers need to know about non-compete clauses.

What is a Non-Compete Clause?

A non-compete clause (also called a "restrictive covenant" or "competition restriction") is a contract term that limits your ability to work for competitors after the contract ends. Clients include them to protect their business interests preventing you from taking what you learned straight to a rival.

Common Variations

Don't confuse non-competes with similar but different clauses:

• Non-compete: Can't work for competitors at all
• Non-solicitation: Can't approach the client's customers or employees
• Confidentiality/NDA: Can't share proprietary information

Confidentiality clauses are standard and usually reasonable. Non-solicitation can be fair if narrowly defined. Non-competes are the most restrictive and deserve the most scrutiny.

Why Clients Include Them

Legitimate reasons include protecting trade secrets, client relationships, and strategic information. A marketing agency might not want you taking their campaign strategy to a competitor. A fintech startup might worry about you sharing their product roadmap. These concerns are understandable but they don't justify unlimited restrictions on your livelihood.

Are Non-Competes Enforceable Against UK Freelancers?

Here's the crucial part: UK courts are generally skeptical of non-compete clauses, especially for freelancers. The law starts from the position that such restrictions are void as "restraint of trade" unless the client can prove they're reasonable.

The "Legitimate Business Interest" Test

For a non-compete to be enforceable, the client must show:

1. They have a legitimate business interest to protect (not just a desire to eliminate competition)
2. The restriction goes no further than necessary to protect that interest
3. The restriction is reasonable in terms of duration, geographic scope, and activities covered

Freelancers vs Employees: Different Treatment

Courts apply even stricter scrutiny to freelancer non-competes than employee ones. Why? Because:

• Freelancers have less bargaining power during contract negotiation
• Freelancers typically have shorter engagements, so less access to truly sensitive information
• Freelancers depend on working with multiple clients to earn a living

A 12-month non-compete might be upheld for a departing CEO; for a freelance designer who worked on one campaign, it would likely be thrown out.

Red Flags in Non-Compete Clauses

Watch out for these warning signs that suggest a non-compete is unreasonable:

Duration Over 6 Months

For freelancers, anything over 3-6 months is likely excessive. If you worked on a 3-month project, a 12-month restriction is disproportionate. Push for restrictions that match the project length.

Geographic Scope Too Broad

"Worldwide" non-competes are rarely enforceable for freelancers unless you're working on truly global projects. If you did web design for a Manchester bakery, they can't reasonably prevent you from working with bakeries in London.

Vague Definition of "Competitor"

"Any business that competes with the Client" is dangerously vague. What if the client pivots into new markets? What if they consider every tech company a competitor? The clause should name specific companies or define competition narrowly.

No Compensation for Restriction Period

Some jurisdictions require clients to pay you during a non-compete period. While not strictly required in the UK, the absence of compensation makes restrictions less likely to be enforced and suggests the client wants something for nothing.

For more warning signs, see our comprehensive guide to freelance contract red flags.

How to Negotiate Non-Compete Terms

Don't just accept or reject negotiate. Here are strategies that work:

Ask for Narrower Scope

Instead of "all competitors," ask for "direct competitors in [specific market segment]." Instead of "any services," limit it to "services substantially similar to those provided under this Agreement."

Reduce Duration

Counter a 12-month restriction with 3 months. Explain that as a freelancer, you need to maintain multiple client relationships to sustain your business.

Specify Exact Competitors

Ask the client to list the specific companies they're concerned about. "You won't work for Companies X, Y, or Z for 6 months" is much clearer than broad language and often reveals that the client's real concerns are quite limited.

Request Carve-Outs for Existing Clients

If you already work with one of their competitors, get it in writing that this existing relationship isn't affected. Add language like: "This restriction does not apply to clients with whom the Contractor had an existing relationship prior to this Agreement."

Example: Reasonable vs Unreasonable Clauses

The reasonable version is specific (named competitors), limited in scope (brand strategy only, UK only), and proportionate in duration (3 months). It protects the client's legitimate interests without preventing you from earning a living.

Frequently Asked Questions

What happens if I ignore an unenforceable non-compete?

Even if a clause is likely unenforceable, breaking it could lead to legal threats or disputes. The safest approach is to negotiate reasonable terms upfront. If you've already signed, consider getting legal advice before taking on work that might breach the clause.

Can a client add a non-compete after we've started working together?

They can ask, but you don't have to agree. Any change to your contract requires mutual consent. If they insist on adding restrictions mid-project, negotiate additional compensation or simply decline.

Do non-competes apply to work I do through agencies or platforms?

It depends on the wording. Some clauses cover "direct or indirect" work, which could include agency placements. Others only restrict direct client relationships. Read carefully and ask for clarification if unsure.

Should I ever sign a non-compete?

Yes, if it's reasonable. A narrowly-scoped, short-duration restriction for a high-value client can be a fair trade-off. Especially if you're working with genuinely sensitive information or strategy. The key is ensuring the restriction is proportionate to your access and involvement.