At Basic Rights Queensland, we often hear from workers who feel trapped by unfair contract terms. That’s why we are proud to endorse a recent submission by JobWatch and other community legal centres to the Federal Government’s inquiry into non-compete clauses.
The problem with non-competes
Non-compete clauses are one of the most common types of restraint clauses (terms in employment contracts designed to restrict what a worker can do after leaving a job). While restraint clauses are often justified as protecting business interests, in practice they too often go further, limiting workers’ choices, mobility and bargaining power. Non-competes are particularly damaging because they can block people from finding new work altogether.
In 2023, the Australian Bureau of Statistics (ABS) found that almost 1 in 5 businesses used non-compete clauses – and in many of those businesses, most staff were covered.
Take *Jodie, casually employed as a hairdresser in a remote town in rural Queensland. She sought support from us, through Working Women Queensland (WWQ) after her employer threatened to enforce a restraint clause that would prevent her from working in the same industry within a 20 km radius of the business. Following a breakdown in the working relationship, Jodie stopped receiving shifts, leaving her in significant financial hardship. Without access to a vehicle and as the primary carer for her young children, she tried to operate a home-based hairdressing business. However, she faced threats of legal action from her former employer.
We assisted Jodie in resolving the matter, and her employer ultimately agreed not to pursue the restraint clause under the circumstances. While this outcome was favourable, such concessions from employers are rare. This leaves vulnerable workers exposed to costly enforcement action and undue pressure from former employers.
Who is affected?
Working women are disproportionately affected by non-competes, which are often used in sectors where women make up a large share of the workforce and already face barriers to fair pay and progression.
We know from experience it’s everyday workers who are most affected:
- Women returning from parental leave who are pressured into signing “repayment” contracts.
- Migrant workers with limited English who are told they’ll have to repay training costs if they leave.
- Young people in insecure jobs, worried that taking a second job could see them penalised.
These groups of workers are already vulnerable. Non-competes take away even more of their bargaining power and agency over their livelihoods.
What we’re calling for:
Together with JobWatch and other community legal centres, we’re urging the government to:
- Ban non-compete clauses outright, so workers can change jobs freely.
- Extend protections to contractors, not just employees.
- Prohibit unfair “golden handcuffs” and repayment clauses that lock workers in.
- Crack down on no-poach and wage-fixing deals between businesses that keep wages low.
- Make enforcement real, with strong penalties for employers and clear, affordable remedies for workers.
Why does this matter?
Being able to move between jobs is important for everyone. Workers can escape exploitation, find better pay and conditions, and build a better future for their families. Employers benefit from a fairer, more dynamic labour market. And our economy grows stronger when productivity is higher, and people are free to use their skills.
At BRQ, we’ll keep standing alongside workers who are held back by unfair contracts. Everyone deserves the right to work with dignity and without unnecessary restraints.
If you are experiencing an issue at work, call us on 1800 358 511 to access support.