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- Non-complete clauses in the contract. What are they? And how do they work? Well, stick around and Ill tell you. Hi, Im Simon from the contract company. Contracts for Australian businesses, thats what we do, all day, every day and sometimes overnight, lucky us. What are non-compete clauses, and how do they work? Well, a non-compete clause, is a contractual clause that parties agree to, where one party agrees not to do certain things in the future. Lets use an easy example. Lets say you, as an employer run a software development business, and you hire a gun software developer. You may want to try and restrain or stop that software developer, from using knowledge and skills that they gain working for you, with someone else. So in other words, lets say, theyre developing a banking application, you may wanna stop them, using those skills that theyve developed in relation to that banking application with other businesses, in the future. So non-compete clauses, usually have two elem