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The Federal Government intends to ban not only non-competes, but also terms that prohibit co-worker solicitation, and the use of "cascading clauses" in post-employment restraints, draft legislation shows.

"Non-compete clauses drag down wages, handcuff workers, and put a handbrake on labour productivity," Workplace Relations Minister Amanda Rishworth said today, releasing an exposure draft of the Treasury Laws Amendment (Banning Unfair Non-Competes) Bill 2026.

As previously reported by HR Daily, Treasurer Jim Chalmers announced the non-compete ban as part of his Federal Budget speech in March 2025. It was recommended by Treasury's Competition Review, which launched in 2023 – HR Daily reported a selection of its submissions in August 2024.

As was largely anticipated, "the Bill, if enacted in its current form, will amend the Fair Work Act by banning non-compete clauses for employees who earn less than the high-income threshold", Mallesons senior consultant Brett Feltham tells HR Daily...