What is a non-compete agreement?

A non-compete agreement restricts one party from working with competitors during or after a business relationship. For freelancers, this usually means agreeing not to work with a client's direct competitors for a set period.

A word of caution: non-competes can seriously limit your ability to earn a living if they're too broad. Australian courts have historically been sceptical of overly restrictive non-competes.

When should you use one?

When a client reasonably needs to protect their competitive advantage and you're gaining deep insight into their strategy. Common in consulting, senior marketing roles, and specialist industry work. Keep the terms narrow and fair.

What's included

Restricted activities - what specifically you can't do. "Work with any competitor" is too broad. "Provide brand strategy services to [named competitors]" is reasonable.

Duration - how long the restriction lasts after the engagement ends. 3-6 months is typical for freelance work.

Geographic scope - where the restriction applies. Nationwide restrictions for a local business would be unreasonable.

Compensation - if you're giving up potential income, you should be compensated.

Exceptions - carve-outs for existing client relationships, general skills development, or industries where the restriction doesn't apply.

Enforceability clause - a severability provision so that if one part is found unreasonable, the rest still holds.