Employment & HR
Generate a restraint of trade / non-compete clause reasonable in scope, duration and geography for Australian employers, drafted with the Federal Government's proposed 2027 non-compete reforms in mind.
Generate a restraint of trade (non-compete) clause for [Employee Name], a [Job Title] at [Company Name], reasonable in duration, geographic area, and restricted activities, protecting [legitimate interest, e.g. client relationships or trade secrets] under Australian common law.
Generate a non-compete clause between [Buyer Name] and [Seller Name] protecting the goodwill purchased in the sale of [Business Name], consistent with the business-sale exception under Australian restraint of trade law.
Generate a standalone non-solicitation clause preventing [Employee Name] from soliciting clients or staff of [Company Name] for [Duration] after leaving, as an alternative or addition to a non-compete.
A non-compete agreement (restraint of trade clause) restricts an employee, contractor, or business seller from competing with a business for a defined period, area, and set of activities after the relationship ends. This free Australian non-compete generator produces restraint of trade clauses for senior employees and business sale agreements, drafted to satisfy the common law reasonableness test that Australian courts apply to any restraint. It also reflects the Federal Government's proposed 2027 reform, expected to ban non-compete clauses for most employees earning below the Fair Work Act high-income threshold ($183,100 for FY2025-26, indexed annually), while leaving business-sale restraints untouched. It is designed for Australian employers protecting client relationships or trade secrets, and for buyers and sellers structuring a business sale. Use it to draft a restraint that is proportionate in duration, geography, and scope, reducing the risk a court — or future legislation — will strike it down.
A non-compete agreement (or restraint of trade clause) is a contract term that stops a person from working for a competitor or starting a competing business for a set period, area, and scope of activity after leaving a role or selling a business.
Yes, but only to the extent reasonably necessary to protect a legitimate business interest, such as confidential information or client connections. Courts will strike down or read down clauses that go further than necessary.
The Federal Government has proposed banning non-compete clauses for most employees earning below the Fair Work Act high-income threshold, with commencement expected from 2027. As of 2026 the ban has not yet been legislated, and restraints tied to a business sale are expected to remain exempt.
Courts weigh the duration, geographic area, and scope of restricted activities against the legitimate interest being protected — the narrower and more proportionate the clause, the more likely it is enforceable.
Yes, under current common law, and the proposed 2027 ban is expected to apply mainly to workers below the high-income threshold, with the position for higher earners still under consultation.
A non-compete stops someone from working for or starting a competing business, while a non-solicitation clause only stops them from approaching former clients or staff — a narrower restriction that is often easier to enforce.
A court may declare the clause void, or in some states (such as NSW under the Restraints of Trade Act 1976) read it down to a narrower scope that is reasonable.