Who must comply with Enforce + manage post-employment restraints — current state?
The applicability test for Enforce + manage post-employment restraints — current state (FWC), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Only if
Applies only if your contracts contain restraint of trade clauses. Whether it applies turns on a fact that no industry, structure or size settles on its own.
What the obligation is
Restraint of trade common law + 2024 reforms restricting non-competes under $183K salary.
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.
The applicability test
Applies only if your contracts contain restraint of trade clauses. Whether it applies turns on a fact that no industry, structure or size settles on its own.
How the regulator frames it: Employers using restraint clauses.
What triggers it: Employment contract with restraints; termination triggering restraint.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (35 of 35: only if a further fact applies).
The answer is the same in every industry: only if a further fact applies. Industry does not change who must comply.
Business structure and size
Structure does not change the answer across all industries: for every structure the answer is "only if a further fact applies".
| Size band | Answer across all industries, any structure |
|---|---|
| No employees (turnover $100K–$1M) | No |
| 1–5 employees (turnover $100K–$1M) | Only if a further fact applies |
| 6–19 employees (turnover $1M–$3M) | Only if a further fact applies |
| 20–99 employees (turnover $3M–$10M) | Only if a further fact applies |
| 100–499 employees (turnover $10M–$100M) | Only if a further fact applies |
| 500+ employees (turnover $100M–$1B) | Only if a further fact applies |
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in real estate agents with no employees, turnover $100K–$1M: does not apply. Requires a trigger outside this questionnaire.
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: check whether it applies. applies only if your contracts contain restraint of trade clauses.
- Pty Ltd company in real estate agents with 500+ employees, turnover $100M–$1B: check whether it applies. applies only if your contracts contain restraint of trade clauses.
When you need to check further
The engine shows this obligation as "check whether this applies" when a business has employees. It then applies only if your contracts contain restraint of trade clauses. That fact is not something Rules Mate can infer from industry, structure or size.
What you must do, and when
- When due
- At contract design + termination.
- Frequency
- When a triggering event occurs
- Evidence to keep
- Reasonable + limited duration + geographic + activity scope; consideration for restraint.
- Status
- Current
- Priority
- Medium
Penalty for not complying
Maximum penalty: Restraints typically severed if unreasonable; common-law contract claim.
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
Where it sits in the corpus
Rules Mate tracks 19 published obligations tagged "workplace", 5 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 13 of those apply outright. This obligation is rated medium priority, and is triggered by events.
Regulator, legislation and tools
Regulated by Fair Work Commission.
FWC: National workplace relations tribunal. Sets modern awards and the national minimum wage, resolves unfair dismissal and general protections disputes, and registers enterprise agreements.
FW Act: Federal workplace relations Act.
Free tools that help with this obligation:
Questions
- Who must comply with Enforce + manage post-employment restraints — current state?
- Applies only if your contracts contain restraint of trade clauses. Whether it applies turns on a fact that no industry, structure or size settles on its own.
- Does Enforce + manage post-employment restraints — current state apply to sole traders?
- Only if a further fact applies. Across every industry and every size band, the engine's answer for a sole trader is: only if a further fact applies.
- Does Enforce + manage post-employment restraints — current state apply to businesses with 1–5 employees?
- Only if a further fact applies (1–5 employees, turnover $100K–$1M).
- When is "Enforce + manage post-employment restraints — current state" due?
- At contract design + termination.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.