Non-compete clause changes rile small business advocates, hairdressers

“Just like with brands and copyrights, we must actually have a certain degree of protection for small businesses – that when they are building these resources and are building these basis of customers, that there are those protections.

“It’s a bit non -Australian. I don’t think he really passed the pub of the pub.”

‘More damage than good’

The government plans were strongly influenced by the growing research on non -competing clauses, also by the Australian independent Think Tank E61.

Jack Buckley, an E61 senior researcher, said that people who joined a company who used non -competing clauses did not get higher wages than those who started working with a company that did not use these clauses.

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He said that, in theory and in practice, these people should obtain higher wages because they were giving up the opportunity to easily move to another company for a better salary or condition.

“It seems that people are recording not knowing these non -competing clauses or what it will mean for them,” he said.

The research also discovered that high income-income earnings are not affected by the plans of the government-they have spent long periods of time outside the workforce when they had signed non-competing contracts, said Buckley.

The non -disclosure agreements have allowed highly qualified and well -paid senior staff to move, but the non -competing clauses have left these people out of the workforce, often for more than six months, he said.

The proposed ban was also expected closely by the Australian technological sector, in which a manager said that the clauses did “more damage than benefits for the Australian ecosystem”.

“For employees, the non -competitors maintain stagnant wages and limit the opportunities for the growth of career and the development of skills,” said Ellis Taylor, director of technological hiring consultancy, Ellis Taylor.

“For employers, the clauses make it more difficult to attract the best talents and suffocate the sharing of knowledge and innovation, especially in sectors such as technology, where the exchange of ideas is fundamental.”

Only 1 % of workers reduce jobs due to non -competing clauses, they show ABS figures.

The CEO of the Australian Chamber of Commerce and Industry (Acci) Andrew McKellar echoed to the feelings of Achterstraat according to which there were legitimate uses for the clause and described the ban as heavy. “Politics does not reach this balance,” said McKellar.

“All companies have the right to protect their confidential information,” he said. “Any suggestion that should not be able to do it is abundantly inappropriate. The restrictions derived from sales agreements to business, confidentiality clauses and NDA have a zero impact on the mobility of the workforce: the limitations should be expressly out of the table.”

Fiona Beamish, CEO of the hairdresser Council, hopes to see further details from the Albanian government on the proposal and wonders if the government has thought through the impacts of the proposal.

“He is raising concern and raising questions about the government to support small businesses,” he said. “Where is the consideration of the impact that this has on the sector?

“Perhaps it does not affect some, but it certainly affects us and many crafts. It is still a challenge in our sector, and therefore adding this ban – it is a double level of corporate challenges that we have always faced.”

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