Non-compete clauses are a type of restraint of trade clause that seek to restrict a worker (both employees and independent contractors) from working for a competitor or establishing a competing business, typically within a geographic area and for a time period after the worker ceases employment.

Non-compete clauses can be distinguished from other types of restraint of trade clauses, such as client or co-worker non-solicitation and non-disclosure clauses. These other clauses can restrict what a worker can do with relationships built during employment, or how they can use confidential information learned on the job.

This paper seeks information and views to inform the Competition Review’s consideration of non-compete clauses and related clauses that restrict workers from shifting to better-paying jobs. Should any potential reform be needed, the government will engage in further consultation on potential options.

Questions are included throughout the paper to guide comments. The public is invited to answer some or all of the questions, or to comment on issues more broadly. The feedback will inform the Australian government’s consideration of whether reform is needed.

Consultation closes 31 May 2024.