Can a Client Stop a Freelancer Working for Competitors?

Some freelance contracts try to restrict work for competitors during the engagement, after it ends, or both.

Whether a particular restriction is legally effective depends on the wording, circumstances and applicable law.

From a commercial perspective, the first question is simpler:

How much of my future work is this clause asking me to give up?

Different clauses can restrict future work

Restrictions may appear under headings such as:

• non-compete;
• conflict of interest;
• exclusivity;
• restrictive covenants;
• confidentiality.

They do not all do the same thing.

A confidentiality clause protects information. A non-compete clause restricts who you may work for. An exclusivity clause may stop you working for anyone else during the engagement.

What counts as a competitor?

This is often the critical definition.

A narrow restriction might name a small group of direct competitors.

A broad one might cover:

any business that competes directly or indirectly with the Client.

For a freelancer working in a specialist sector, that could exclude a large part of the market.

Ask:

• who counts as a competitor;
• whether the definition is objective;
• whether the client can expand the list later.

How long does the restriction last?

A clause applying only while you are actively working for the client is commercially different from one continuing for:

• six months;
• one year;
• two years.

The longer the period, the more important it is to understand its effect on your pipeline.

What geography does it cover?

A restriction might apply:

• in one city;
• across the UK;
• across Europe;
• worldwide.

For remote freelancers, a worldwide restriction can be particularly significant.

Is the client paying for exclusivity?

If a client wants you to turn away competing work, that has an economic cost.

You may want to consider whether the fee reflects:

• reduced ability to take other clients;
• lost opportunities;
• the duration of the restriction.

Confidentiality may already address the concern

Sometimes the client's real concern is that you might disclose sensitive information to a competitor.

A strong confidentiality clause may address that concern without preventing you from working in the sector entirely.

See Freelance Confidentiality Clauses: What Should You Look Out For? and Freelance Non-Compete Clauses: What Should You Look Out For?.

Questions to ask before signing

Check:

• Which businesses are restricted?
• Does the restriction apply during or after the project?
• How long does it last?
• What geography does it cover?
• Does it apply to every role or only competing services?
• Is there a confidentiality-based alternative?
• Does the fee reflect the restriction?

Should you accept it?

There is no universal answer.

A short, clearly defined conflict restriction on a sensitive engagement is commercially different from a broad clause preventing you from serving an entire industry for a year.

The important point is to understand the opportunity cost before signing.

PactRivet can surface work-restriction clauses and explain the practical questions they raise without pretending to determine whether a particular restriction is legally enforceable.

Related guide

For a broader look at this area, see Freelance Non-Compete Clauses: What Should You Look Out For?.

PactRivet provides general information and questions to consider. It is not legal advice.