Scheduled to take effect in 2027, the reform to Australian employment law is anticipated to significantly change the workforce. Here, one lawyer offers guidance for how employers should respond in the dynamic economic landscape.
Non-competes are set to be voided or non-applicable for workers earning below theFair Work Act 2009 high-income threshold, currently at $183,000, and likely to increase in July 2026, as it does every year. Once implemented next year, it is likely to be applied retrospectively to provisions in existing and future contracts.
Functioning as a way to protect proven and legitimate business interests, non-compete clauses prevent workers from accepting new employment with a competitor within a specified geographical area for a duration, should they be terminated or resign from their current position.
In last year’s federal budget, the Albanese government announced it would ban non-compete clauses under the then-threshold of $175,000.
According to workplace specialist Roger Lewis of arch.law, “non-compete clauses have traditionally been included as a standard protection in many Australian employment contracts. If the proposed reform proceeds as indicated, those clauses will no longer be effective for a very large segment of the workforce.”
Lewis also highlighted that the latest reform will affect business structure employment protections.
He said: “Employers will need to focus much more closely on recruitment, employee management and internal systems to...
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