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
Related obligations
- CWLTHProvide 10 days paid family + domestic violence leave (FDV)Paid FDV leave for all employees: 10 days per year (full-time + part-time + casual).
- CWLTHAvoid sham contracting (s 357 Fair Work Act)Employer must not misrepresent employment as contractor relationship.
- CWLTHEmployee-like worker minimum standards (Closing Loopholes No. 2 2024)FWC can set minimum standards for 'employee-like' workers (gig economy).
- CWLTHSame job same pay (labour hire reform)Labour hire workers entitled to same minimum pay as direct employees on host site.
- CWLTHCasual employment definition + conversion (Closing Loopholes 2024)New casual employment definition + employee choice pathway from 26 August 2024.
- CWLTHLodge WGEA workplace gender equality reportPrivate-sector employers with 100+ staff must report annually; pay gaps are now publicly published.
Frequently asked questions
- Who must comply with Enforce + manage post-employment restraints — current state?
- Employers using restraint clauses.
- What triggers Enforce + manage post-employment restraints — current state?
- Employment contract with restraints; termination triggering restraint.
- When is Enforce + manage post-employment restraints — current state due?
- At contract design + termination.
- What is the maximum penalty for Enforce + manage post-employment restraints — current state?
- Restraints typically severed if unreasonable; common-law contract claim
- What evidence is required for Enforce + manage post-employment restraints — current state?
- Reasonable + limited duration + geographic + activity scope; consideration for restraint.
Source: https://treasury.gov.au/consultation/c2024-561801. Rules Mate is not a law firm. Always verify against the live regulator source before acting.