In the ‘bonus budget’ presented by Treasurer Jim Chalmers it has been revealed that if the federal government is returned they will outlaw non-compete clauses in employment contracts for all workers who earn less than $175k per year.
In making the announcement the Treasurer outlined that there are more than 3 million workers nationwide who are being “held back” by non-complete clauses.
He said the changes will increase wages by up to $2,500 for workers on median wages, with more than three million workers covered by non-competes, which “are holding too many Australians back from switching to better, higher-paying jobs”.
“People shouldn’t need to hire a lawyer to take the next step in their career.”
“Or permission from their old boss if they want to be their own boss, and turn an idea into a small business,” he said.
If passed the changes will apply to all staff earning less than the High Income Threshold (which this year is $175,000).
Workplace Relations Minister Murray Watt and Competition Minister Andrew Leigh, expanded on the Treasurers announcement to outline that the changes will also “close loopholes” in competition law that permit businesses to:
- “fix wages by making anti-competitive arrangements that cap workers’ pay and conditions, without the knowledge and agreement of affected workers”; and
- use ‘no-poach’ agreements “to block staff from being hired by competitors”.
“This is not law yet…it is just an announcement at this stage, and the Government has committed to will consult on policy details, including exemptions, penalties, and transition arrangements. It will also consider extending the restrictions on non-competes to high-income workers and to curbing non-solicitation clauses for clients and co-workers”, explained ACAPMAs Elisha Radwanowski.
ACAPMA
