Workplace lawyers reveal the potential impact of non-compete clauses on training, upskilling
The Federal Government's plan to ban non‑compete clauses risks dampening employers' appetite for investing in staff training and development, workplace lawyers have cautioned.
Barry Nilsson, in a recent article, pointed out that non‑compete clauses can influence how much training and upskilling employers provide to employees.
"Such protection arguably incentivises employers to invest in the training and development of their employees, with the confidence that the benefits of that investment will be retained within the business," the firm said in a recent article.
But with the proposed ban on these clauses, the law firm warned that it may also affect the value of investments made in employee training and development.
It said that the shift may result in "reduced incentive to invest in the training and development of employees due to the increased risk that skills, knowledge, and experience acquired during employment may be transferred to competitors."
It may also make it more difficult for employers to retrain employees, as greater job mobility may boost employees' bargaining power in wage negotiations, according to the law firm.
It further warned that it would heighten the risk of intellectual property, confidential information, and client relationships being used by former employees.
"These risks highlight a shift in how employers may need to approach the protection of such...
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