HR proves to be important once again!

26 November 2025|blog industrial-relations strategic-hr whs-blog

Once again, changes in legislation, proves just how important HR really is!

The Government is looking at, from 2027, banning non-compete or restraint clauses for those earning below the high-income threshold (which is currently $183,100 per annum) and others in limited circumstances. See more here.

The Government sees it as encouraging aspiration, unlocking opportunity and lifting wages. They believe that employees are handcuffed to current jobs when there are better opportunities.

Regardless of what they think and their reasons for doing it, not having non-compete clauses, proves once again how important Human Resources really is in business!

It has been said that non-compete clauses used to be in only Senior Executives contracts, however, now they are in everyone’s contracts, teachers, tradespeople, technicians. However, I would say that every role is important and not only because recruitment it difficult, but they simply all are valuable to an organisation. And everyone is privy to company information, have or know contacts and other important information which all businesses want to protect.

It has also been said that there are lasting consequences to employees through having these non-compete or restraint clauses but in my experience this isn’t the case. They are ignored most by individuals and businesses will only take action if it is reasonable, necessary and therefore justified – and again in my experience I have never seen it. And it’s never about stopping the individual but rather protecting the business and I guess this can be done through other clauses.

Anyway, my point is to emphasise the need for HR and the need to ensure actions, measures are in place to create loyalty, maximise retention, create engagement so that key people, all people are not lost and are happy and productive to maximise performance and productivity and ensure a ROI. This would minimise the risk of any risk to your business even if they were to change jobs.

This is further emphasised with other recent legislative changes;

The Duty to proactively manage sexual harassment and have a written prevention plan for workplace harassment, only make for a work environment free from negative, destructive behaviours and a more harmonious positive culture which is conducive to performance and productivity and therefore good for both employees and employers.
The requirement to manage psychosocial risks and implement control measures requires an employer to look at all aspects of work that could impact their team from; job demands, conflict, support, change management, clarity, relationships and the list goes on. This is all really good HR practice but also result in positive outcomes for employees and therefore the employer.
The right to disconnect, whilst may seem over the top or restrictive to the employer but it does ensure positive mental health for workers and therefore once again can only result in positive outcomes for the employee and employer (if managed properly).

At HR Business Direction we assist with complying with legislation and managing your people – good HR, contact us here to discuss further.

Leisa Messer BBus(HRM); GradDipIR; FCPHR
Managing Director | HR Strategist
leisa.messer@hrbd.com.au
07 3890 2066
hrbd.com.au