15/10/2026
Do your employment contracts include a non-compete clause? Proposed changes could have a significant impact on employers.
The Federal Government has recently released draft legislation that would reshape how restraint of trade provisions operate in Australia through the proposed Competition and Fair Work Legislation Amendment (Banning Unfair Non-Competes) Bill 2026.
If passed, the proposed reforms would:
• Ban non-compete clauses for employees earning below the high-income threshold (currently $190,100)
• Ban co-worker non-solicitation clauses for all employees, regardless of income
• Make commonly used "cascading" restraint clauses unenforceable
• Treat no-poach and wage-fixing arrangements between businesses as cartel conduct
One of the most significant changes for employers is that penalties could apply simply for including a prohibited clause in an employment contract, even if the clause is never enforced.
Read our full article here: www.comminshendriks.com.au/news/proposed-non-compete-reforms-what-employers-need-to-know
With the proposed reforms likely to affect many existing employment contracts, now is a good time to review your restraint provisions and consider whether any updates may be required if the legislation proceeds.
Our Employment Law team can help you understand the proposed changes and prepare your business. Contact us on 1800 643 779 or e-mail [email protected]
