Luis Izzo talks about non-compete clauses and whether they should be banned in Australia with Wendy Yang, Law Society Journal.
With the Australian Government’s announcement of a Competition Review in August 2023, it sparked discussions around the impact of non-compete and similar restraint clauses on job mobility, innovation and wage growth. Current data from the Australian Bureau of Statistics and research from the e61 Institute (2023) reveal that non-compete clauses affect one in five Australian workers, while half of the workforce is subject to some form of restraint. This widespread use of such clauses raises concerns about the potential stifling effect on job transitions and employee bargaining power.
Luis sheds light on the complexities surrounding the enforcement of these clauses in a recent in the Law Society Journal. Non-compete clauses, while often onerous for employees, can be necessary to protect legitimate business interests. Courts generally approach these clauses with caution, balancing the need for businesses to safeguard confidential information and customer relationships against the public policy principle of allowing individuals to earn a living. The enforceability of restraint clauses, particularly for junior employees or in certain industries like the law, often hinges on factors such as customer connections, employee seniority and the reasonableness of the restraint’s term.
Read the full article in the .
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