Clifford Chance

A new era for worker mobility and competition? Australian government’s proposed ban on non-compete clauses and other restraints

22 August 2025

As foreshadowed in its 2025-2026 budget, the Australian Government has now released a consultation paper proposing an outright ban on the use of non-compete clauses in some contexts and sweeping reforms relating to other restraints in labour contracts. For interested parties wishing to make submissions to the consultation, submissions are due on 5 September 2025. Importantly, the Australian Government is not currently proposing changes to restraints of trade outside of the
employment context.

The proposed changes, which will be made to the Fair Work Act 2009 (Cth) (Fair Work Act) and the Competition and Consumer Act 2010 (Cth) (CCA), aim to boost job mobility, wage growth, and productivity by banning the use of non-compete clauses for most workers and closing “loopholes” that potentially allow other anti-competitive practices in the labour market. These reforms mark a significant shift in the regulation of employment restraints in Australia and signal a new era for employers, employees, and businesses navigating the Australian labour market.

Download PDF