Public Policy: Non-compete clause reform - Roundtable discussion

Meeting Agenda

The government has issued a consultation on options to reform non-compete clauses in employment contracts. It states that non-compete clauses are inserted into employment contracts to restrict an individual’s ability to work for, or establish, a competing business after they have moved on from a job. The starting point under current law is that a non-compete clause, as with any clause in restraint of trade, is unenforceable, unless the employer can demonstrate it is reasonable, which is assessed by a court if a challenge is brought as to the clause’s enforceability. However, there are few constraints on employers including non-compete clauses in employment contracts, whether enforceable or not.

The consultation seeks input on alternative policy options, which would support the government’s growth mission, including:

• introducing statutory limits on the length of non-compete clauses
• banning non-compete clauses in employment contracts
• banning non-compete clauses below a salary threshold
• combining a ban below a salary threshold with a statutory limit

This is your opportunity to share your views with Tania Bowers, APSCo’s Director of Global Public Policy, on these options and to input into APSCo’s consultation submission.