.jpg)
As members are aware, the Commonwealth Department of Treasury has established a Competition Taskforce to examine competition laws, policies and institutions to ensure they remain fit for purpose. As part of this review, the taskforce met with RCSA members earlier this year to discuss the use of non-competes and other restraint of trade clauses in employment. The government has now published an issues paper inviting feedback from workers, businesses, and the wider community regarding the application and effects of these clauses throughout the economy.
RCSA will support the Australian Chamber of Commerce and Industry (ACCI) in developing its formal response to the department, and is seeking members' feedback on issues raised in the paper. While RCSA members offered verbal insights and feedback at the roundtable with Treasury earlier this year, RCSA will provide any further insights from members to ACCI to for inclusion in its response to the review.
The Issues Paper states that evidence indicates that while restraint of trade clauses may benefit certain businesses, they are negatively affecting workers, other businesses, and overall economic results. This impact manifests in decreased wage growth, limited job mobility, and restricted access to skilled workers. The paper is seeking feedback on the following clauses:
- Non-Compete Clauses
- Non-Solicitation Clauses
- Non-Disclosure Clauses
In addition to seeking submissions, Treasury is also accepting feedback directly from employers through a short questionnaire. We encourage members with interest in these issues to participate directly here
As discussed, our industry interacts with these clauses regularly and this provides an opportunity for RCSA members to have a real involvement in the government’s policy agenda. If members would like to provide feedback to support ACCI’s response to the discussion paper, please do so by 30th April 2024 to Lily from our advocacy team at [email protected] or +61 448 332 610.