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Monday, July 7, 2025

Non-compete agreements and other restraints can end up hurting Australian workers – and all of us pay the price - The Conversation

Australian workers have to overcome some significant barriers in navigating their careers.

Some may lack the training or work experience opportunities needed to make themselves stand out and take the next step. Others may be extensively qualified, but face limited new job or promotional opportunities relevant to their skill set.

But there’s another common barrier that’s often overlooked: post-employment restraints. Among the most well-known are non-compete clauses, but these aren’t the only kind.

These tools are designed to protect employer interests. But their widespread use has far-reaching consequences for job mobility, wages and innovation across Australia.

Our new research, which was commissioned by the Department of Treasury and conducted by researchers at Queensland University of Technology, set out to examine how these agreements are impacting Australia’s workforce.

We zeroed in on two very different occupational groups – hairdressers and IT professionals. Our findings point to an urgent need for regulatory reform in Australia. But we also offer solutions that could better balance business needs with worker rights.

What are post-employment restraints?

Post-employment restraints are contractual clauses that restrict what workers can do after leaving their jobs.

One common type are non-compete clauses, which prevent workers from joining competitors or starting their own businesses, usually (though not always) in the same industry.

There are also non-solicitation...



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