The not-so-golden handcuffs costing workers $2500 a year
The Australian federal government plans to ban non-compete clauses for workers earning under $190,000 to boost economic productivity. Officials argue these clauses unfairly restrict job mobility and suppress wages for employees across various industries.
Why it matters
This policy shift could significantly impact labor market flexibility and wage growth for a large segment of the Australian workforce.
Save You have reached your maximum number of saved items.
Remove items from your saved list to add more.
Share A A A Contractual handcuffs that prevent people on less than $190,000 from moving to a better-paying or more interesting job would be banned under proposed laws to be unveiled by the federal government on Monday.
The ban on so-called non-compete clauses, part of the government’s plans to boost productivity across the economy, follows growing evidence their use by some firms is having a “chilling effect” on workers whose skills may be better rewarded with another employer.
Bricklayers, childcare workers and nurses have been caught in non-compete clauses which economists argue reduce wages and slow productivity. Craig Abraham Assistant Productivity and Competition Minister Andrew Leigh said banning non-competes was aimed at making the economy work more efficiently while delivering better wages.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in