In a significant move, the Albanese Government has announced it will ban non-compete clauses in employment contracts for workers earning up to $175,000 annually. The reform, part of the 2025 Federal Budget (25 March 2025), could potentially be extended to higher income brackets in the future.
The proposed changes will prevent restrictive agreements that currently stop employees from joining rival businesses or starting their own ventures. The government is also targeting “no-poach” agreements between companies that restrict them from recruiting each other’s staff.
Industries such as childcare, construction, and hairdressing are expected to be key beneficiaries of the reforms. The plan will involve amendments to the Fair Work Act.
Please Contact Us if you would like to discuss how the proposed laws may impact your business.
