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Andrew Leigh

Want to quit your job? Your contract may be keeping you prisoner

Non-compete clauses – now common in contracts from construction workers to hairdressers – are used not to protect secrets, but to scare people.

When Othelia decided to leave her job in property management, she thought she was just changing employers. Instead, she found herself cornered. Her boss told her that if she wanted to stay in the industry, she would have to leave town. Othelia was 21, living in a regional community, and had no family support. Her choice? Stay in a job that made her miserable, or risk having no income at all.

Jasper was in a similar bind. He had been coaching children’s sports part-time for three years. He wasn’t in charge of marketing or finances – just teaching kids how to kick a ball. But buried in his contract was a clause banning him from working for a competitor for six months after he left. When he resigned, his boss made it clear: try to coach anywhere else, and there would be consequences.

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Andrew Leigh is the Assistant Minister for Competition, Charities and Treasury.

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    Original URL: https://www.afr.com/policy/economy/want-to-quit-your-job-your-contract-may-be-keeping-you-prisoner-20250328-p5ln7x