Skip to content
Back to News Hub
Industrial Relations, Legal

The Federal Government’s proposed ban on non-compete clauses will hurt the workers it claims to help

Attwood Marshall Lawyers 2 mins read

FOR IMMEDIATE PUBLICATION

14 May 2025

 

The Federal Government’s proposed ban on non-compete clauses will hurt the workers it claims to help

 

Attwood Marshall Lawyers has cautioned that the Federal Government’s proposed ban on non-compete clauses for lower-income workers could create more problems than it solves—particularly for small to medium-sized businesses.

 

Announced in the 2025 Federal Budget, the proposed legislation would prohibit non-compete clauses for employees earning under $175,000, impacting industries such as childcare, hairdressing, and construction. The Government argues the change will increase wages and job mobility for millions of Australians, with projected economic benefits of up to $5 billion.

 

However, Charles Lethbridge, Attwood Marshall Lawyers’ Commercial Litigation Partner and NSW Law Society Accredited Specialist in Dispute Resolution, warns that the reforms may weaken essential business protections.

 

“Non-compete clauses exist for good reason—they help protect client relationships, sensitive commercial information, and business goodwill. If removed without a proper alternative, employers risk having staff walk away with valuable contacts and trade secrets.”

 

“Removing these protections could devalue goodwill in professional practices, impacting valuations and succession plans.  We encourage the Government to consult further with legal and business experts to ensure the reforms don’t unintentionally harm the very workers and businesses they aim to support.”

 

Attwood Marshall Lawyers supports fairer, more transparent employment practices but urges a balanced approach, considering the broader implications for industries like financial services, where client relationships are often a key business asset.

 

-ENDS-

Note to editors

 

Attwood Marshall Lawyers’ Commercial Litigation Partner, Charles Lethbridge is available for interview. Please contact Shan Harvey, Media Specialist on 0438 772 752 or [email protected]

 

Established in 1946, Attwood Marshall Lawyers is a leading law firm providing expert legal services in all areas of law including wills and estates, aged care, estate litigation, family law, compensation law, commercial litigation, property and commercial law, and equine breeding and racing law.

 

Find out more about Attwood Marshall Lawyers at https://attwoodmarshall.com.au 


Contact details:

Shan Harvey      

Media Specialist

Ph: 0438 772 752 or 07 5553 5803
[email protected]

Media

More from this category

  • Aviation, Legal
  • 13/03/2026
  • 09:15
Echo Law

Qantas settles COVID flight credits class action for $105 million

Echo Law is pleased to announce that Qantas Airways Limited (QAN) has agreed to pay $105,000,000 to settle the class action lodged in the Federal Court by the firm in August 2023, on behalf of hundreds of thousands of Qantas customers whose flights were cancelled during the COVID pandemic. The settlement agreement is subject to Court approval and is made with no admission of liability. Statement attributed to Andrew Paull, Partner at Echo Law: “This class action was based on allegations that Qantas customers were contractually entitled to cash refunds when their flights were cancelled due to COVID travel restrictions.…

  • Contains:
  • Community, Legal
  • 12/03/2026
  • 13:34
Thursday 12 March

Hobart seminar to explore how human rights help fix critical social challenges

With so many issues currently impacting on the rights of people across Australia, an upcoming seminar in Hobart is set to unpack how we can fix wrongs with rights. With growing concerns around social cohesion, the right to peaceful protest, housing affordability, economic inequality, and the impact of climate change and digital technologies, The Answer Is Human Rights seminar will focus on how human rights can help us address these and other challenging issues. Presented by the Australian Human Rights Commission in partnership with the Office of the Anti-Discrimination Commissioner Tasmania, the seminar is part of the Commission’s national program…

  • Legal, Medical Health Aged Care
  • 10/03/2026
  • 17:30
Maddens Lawyers

Thousands register to participate in the Dr Lanzer Class Action

Patients who underwent cosmetic surgery at the Lanzer Clinics have until 4.00pm Friday 10 April to register or opt out of a class action set for trial in the Supreme Court of Victoria in September. The class action alleges that Dr Daniel Lanzer and his colleagues Dr Daniel Aronov, Dr Ryan Wells, Dr Alieza Fallahi, Dr George Wong, and Dr Daniel Darbyshire engaged in misleading and negligent practices while performing cosmetic surgeries, with many former patients left with injuries and ongoing pain. Psychologist Candice Wainstein, who is the wife of Dr Aronov, is also a defendant. Maddens Lawyers principal Kathryn…

  • Contains:

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.

Book a demo Explore our plans