Union says banning non-compete clauses could raise wages for millions of workers
The ACTU argues that prohibiting non-compete clauses for employees earning under $190,100 could lift average full-time pay by about $4,300 a year.
The Australian Council of Trade Unions released modelling indicating that eliminating non-compete clauses for employees earning less than $190,100 could boost average full-time earnings by about $4,300 per year, a rise of roughly 4 percent. The federal government has prepared a draft bill to ban these clauses for the targeted income group, citing concerns that they restrict job mobility and suppress wages. The ACTU’s submission highlights how the clauses keep workers in positions they do not want and limit overall productivity and innovation.
Business representatives, including the Business Council of Australia, argue the ban may discourage investment and harm small enterprises. The union also calls for the right to be enshrined in the Fair Work Act and supports criminal penalties for breaches of the proposed reforms.
Why it matters
Removing non-compete clauses could improve wages and job mobility for many Australian workers.
In this story
