Hello and welcome to Episode 265 of the People Powered Business Podcast!

In this weeks episode we are chatting about the Federal Governments recent Budget announcement around their plan to ban non-compete clauses in employment contracts.

Today we will break down what non-compete clauses actually are and what they do, what is the Government saying they plan to do and what this means for your business.

Put simply, non-compete clauses are clauses in employment contracts that prevent an employee from working in competition with the employer after they leave. Also referred to as non-poach or restraint of trade agreements, they are largely designed, or at least in part to protect an organisations Intellectual Property and aim to protect the livelihood of the business.

The Federal Government recently announced their plans to ban these clauses from sometime in 2027. They have suggested the ban will employ to employees who earn under the high income threshold, currently $175 000.

So what does it mean? In reality these clauses have always been legally difficult to uphold legally – I learnt this the hard way. For now, no need to panic, but sure up your relationships with clients, do great work and remembers this is not definite yet.

An Invitation

Would you like to connect with other like-minded business owners, leaders and managers experiencing similar situations with their team? Join the discussion inside our free Facebook Group – The People Powered Business Community. Click here to join us.

https://www.facebook.com/groups/hrsupportaustralia

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