Enforce + manage post-employment restraints — current state
Restraint of trade common law + 2024 reforms restricting non-competes under $183K salary.
Who must comply
Employers using restraint clauses.
What triggers it
Employment contract with restraints; termination triggering restraint.
When due
At contract design + termination.
Evidence required
Reasonable + limited duration + geographic + activity scope; consideration for restraint.
Max penalty
Restraints typically severed if unreasonable; common-law contract claim
Summary
Post-employment restraints (non-compete, non-solicit, confidentiality) governed by common law (reasonable to protect legitimate business interest). 2024 Closing Loopholes framework includes Treasurer's recommendation to restrict non-compete clauses for workers under $183K (TBD final form). NSW + Vic restraints common-law assessed.
Enforced by
Source legislation
Topics
Source: https://treasury.gov.au/consultation/c2024-561801. Rules Mate is not a law firm. Always verify against the live regulator source before acting.