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Pressure mounts on restraint clauses

The ACTU has endorsed a policy to restrict the use of non-compete clauses, and the Victorian Labour Hire Authority is stepping up its surveillance on the use of restraint clauses in the staffing industry. However, employers say restraint clauses are crucial to encourage employers to invest in training and to protect valuable confidential intellectual property.

At its Congress last week, ACTU assistant secretary Joseph Mitchell announced unions will seek legislation banning non-compete clauses similar to the ban on pay secrecy provisions introduced in last year's Secure Jobs, Better Pay legislation.

The ACTU claims non-compete provisions are becoming more widespread and are being used as a "wage suppression tactic" by employers...