{"id":5069,"date":"2020-05-19T15:00:00","date_gmt":"2020-05-19T13:00:00","guid":{"rendered":"https:\/\/www.freelancermap.com\/blog\/freelancers-sign-noncomplete-clauses\/"},"modified":"2024-11-08T08:28:38","modified_gmt":"2024-11-08T07:28:38","slug":"freelancers-sign-noncomplete-clauses","status":"publish","type":"post","link":"https:\/\/www.freelancermap.com\/blog\/freelancers-sign-noncomplete-clauses\/","title":{"rendered":"Should Freelancers Sign Non-Compete Clauses?"},"content":{"rendered":"\n

Non-compete clauses are often part of regular employee contracts but are finding increasing use in freelancer contracts. Not looking at a non-compete clause properly could lead to quite a bit of trouble. <\/strong><\/p>\n\n\n\n

Ignoring a non-compete agreement could mean anything from delayed payments to not getting paid at all or having to refuse future projects that clash with the agreement.<\/p>\n\n\n\n

Especially for freelancers who work in a certain niche<\/strong>, such agreements can put a serious dent in your business plans.<\/p>\n\n\n\n

To avoid that, we summarized some of the most important facts about non-compete clauses<\/strong>. <\/p>\n\n\n\n

First, we\u2019re going to look at what they actually are, then cover their most important details and last but not least, try to answer the toughest question there: should you sign them or should you turn down the offer<\/a>?<\/strong><\/p>\n\n\n\n

\n

Join our freelancer community today!
Create your profile in just 2 minutes and start attracting new clients.<\/p>\n\n\n

Sign up for free<\/strong><\/span><\/a><\/div><\/br><\/p>\n<\/div><\/div>\n\n\n\n

What is a non-compete clause?<\/h2>\n\n\n\n

A non-compete clause<\/strong> (NCC<\/strong>) or covenant not to compete (CNC) <\/strong>is generally put in place to ensure that the employee or the contractor doesn\u2019t try to compete with the client<\/strong>. That covers all kinds of \u201cconflicting activities<\/strong>\u201d. But basically, a non-compete is there to ensure that you won\u2019t be working with the enemy<\/em>. <\/p>\n\n\n\n

Companies don\u2019t want people that are working for them also helping the competition \u2013 there is a potential conflict of interest there.<\/p>\n\n\n\n

So it\u2019s obvious that these kinds of clauses have some merit. They\u2019re not necessarily written to mess with freelancers. But they can get too restrictive<\/strong>. And that\u2019s where you should pay attention. <\/p>\n\n\n\n

If the clause is written in a way that will prevent you from doing a bunch of projects<\/strong>, it\u2019s probably not worth it.<\/p>\n\n\n\n

Here’s an example of a freelance non-compete agreement<\/strong>:<\/p>\n\n\n\n

\n
\n
\n \"Non-compete\n<\/figure>\n<\/div>\n\n\n\n
Download Word template<\/strong><\/span><\/a><\/div>\n\n\n
Download PDF template<\/strong><\/span><\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n

<\/p>\n\n\n\n

The most important details about a non-compete agreement<\/h2>\n\n\n\n

1. Geographical scope<\/h3>\n\n\n\n

Does the contract prevent you from working with local competitors only<\/strong>? That is probably one of the more reasonable things that a client can ask for. On the other hand, if they expect you to not work with any company they see as competition, watch out. You will very rarely be able to afford not to work with anyone in your entire country or even beyond that because of a non-compete. That is just too much.<\/p>\n\n\n\n

2. Who qualifies as a competitor?<\/h3>\n\n\n\n

So who\u2019s actually part of the competition? The answer to that question is often part of the non-compete clause and is one that can determine whether you should be signing it or not. Let\u2019s say you\u2019re designing a website<\/strong> for a company that sells candles. If they ask you to not work with any other candle-sellers, that\u2019s alright. But asking you to refuse contracts from anyone who produces a light source is taking it too far. It\u2019s a fine line between actual competition<\/strong> and the whole field of work \u2013 make sure your non-compete doesn\u2019t cross it.<\/p>\n\n\n\n

3. Timeframe<\/h3>\n\n\n\n

Thirdly, non-compete clauses are usually put in place for a certain period of time<\/strong>. The lightest version here would be not taking on work with the competition for the duration of the contract<\/strong>. That\u2019s a reasonable request. <\/p>\n\n\n\n

However, some companies might think otherwise. Non-competes for up to one year are not rare<\/strong>. But that doesn\u2019t mean you have to sign them. If they\u2019re even longer than a year, that\u2019s a definite red flag waving in front of that freelancing contract<\/a>.<\/p>\n\n\n\n

\"Checklist<\/figure>\n\n\n\n

So, should you sign a non-compete clause as a freelancer?<\/h2>\n\n\n\n

As we\u2019ve seen, non-compete clauses can make sense and there are definitely some reasonable ones out there. Before signing, the single most important thing to determine is how much of your future freelance business will be affected<\/strong>.<\/p>\n\n\n\n

If you\u2019re looking at anything less than ten percent<\/strong>, it might be worth thinking about. But as soon as a non-compete clause affects more than that, keep your fingers off it. More often than not, it just won\u2019t be worth it in the long run. You cannot predict what future contracts might come your way \u2013 you might be missing out on some big fish.<\/p>\n\n\n\n

The second question you should answer before signing is whether the clause is too broad<\/strong>. Some companies will draft contracts with broad non-compete clauses just because most freelancers won\u2019t argue about them – especially if they\u2019re new to the business. But if the scope is too wide, be it in matters of location, time, or definition of competition; try to negotiate<\/strong> yourself out of it.<\/p>\n\n\n\n

Tip:<\/strong> You can suggest the client signing a non-disclosure agreement<\/a><\/strong> instead. It prevents you from revealing confidential information about them but allows you to work with competitors.<\/p>\n\n\n\n

To sum it up, it all depends on how the non-compete clause is actually written. As a general thumb of rule, always try to keep the demands to a minimum<\/strong>. But don\u2019t outright decline working with such clauses. If (and that\u2019s often a big if<\/strong>) the requests are reasonable and don\u2019t affect a big part of your business, feel free to go for it.<\/p>\n\n\n\n

What has your experience with non-compete clauses been? Share your story with our freelancer community by posting a comment below this article!<\/em><\/p>\n\n\n\n

\"Looking<\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"

Non-compete clauses are often part of regular employee contracts but are finding increasing use in freelancer contracts. Not looking at a non-compete properly could lead to quite a bit of trouble. Read more about NCC and what should you pay attention to before you sign!<\/p>\n","protected":false},"author":2931,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","footnotes":""},"categories":[3407],"tags":[3497,3485],"class_list":["post-5069","post","type-post","status-publish","format-standard","hentry","category-management","tag-legal","tag-templates"],"yoast_head":"\nNon-Compete Clause and Agreement: Should Freelancers Sign Them?<\/title>\n<meta name=\"description\" content=\"\u27a4 What are NCC? \u27a4 Non-compete clause example \u27a4 What details in the competition clause should you pay attention to?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.freelancermap.com\/blog\/freelancers-sign-noncomplete-clauses\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Non-Compete Clause and Agreement: Should Freelancers Sign Them?\" \/>\n<meta property=\"og:description\" content=\"\u27a4 What are NCC? 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