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Do not compete clauses - could I ignore?

4 replies

Geegee7 · 30/04/2025 10:16

I work for a company as a consultant and have a do not compete clause that forbids me to work with clients I met through this work for 24 months after leaving my post. My main client with whom I worked with for several years is leaving due to a disagreement with the company’s boss. They asked me to work for them as a freelancer. I’d love to, but I’m worried about breaking my contract. How would my boss find out that I continue working with their previous client, and what’s the worst that could happen?

EDIT: I’m also freelancing with this company and not full time so I have the capacity and I’m allowed to do other work while working for them, just not with their clients obviously.

OP posts:
PoodlesRUs · 30/04/2025 11:16

I would have thought it would damage your reputation and integrity if found out?

Mumofoneandone · 30/04/2025 11:30

I would get some legal advice, as this sort of clause isn't unusual in some fields but you don't want to risk your reputation. 24 months also seems a long period......

Thiswayorthatway · 30/04/2025 11:36

But they have approached you? Usually such clauses are to stop you actively marketing former clients.

MrsPinkCock · 30/04/2025 12:28

Thiswayorthatway · 30/04/2025 11:36

But they have approached you? Usually such clauses are to stop you actively marketing former clients.

That would be true of a non-solicitation clause but not of a non-compete clause.

Post termination restrictions will only be valid if they go no further than reasonably necessary to protect the company’s legitimate business interests. They can’t simply do it just to prevent fair competition!

24 months is rather unlikely to be a fair duration (although not impossible). And if the duration is unfair then the whole covenant will fall away.

It’s also incredibly expensive to enforce injunctive proceedings and a claim for damages, so you’d have to take that into account when deciding whether to breach the clause too.

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