Post-employment restraints – including non-compete clauses (NCCs), non-solicitation agreements and non-disclosure clauses – aim to protect employers’ proprietary interests, client relationships and intellectual property (IP). However, their broad application raises concerns about job mobility, wage growth and innovation. 

This report investigates the impacts of post-employment restraints on Australian workers and the motivations and experiences of small and medium enterprises (SMEs) in imposing such agreements.

Recent Australian data highlights that nearly half of the workforce is subject to such restrictions, often without negotiation or awareness, disproportionately affecting low-wage and vulnerable workers. However, despite widespread implementation, few studies have addressed their impact. 

The report provides a foundation for evidence-informed policymaking to ensure post-employment restraints serve legitimate business interests without unduly harming workers’ careers or the broader labour market.