Why removing non-compete clauses in contracts will kill the integrity of Real Estate and other business in Australia...

People willing to work on commission only are a hardened breed. Their willing enough to take the risk, to sever ties with traditional employment, because they understand being an "employee" on fixed wages, trading time for money, is not usually the way to get rich…

They somehow understand they have to do something for themselves, where they control how much money they can earn...but what? If you have no formal training in a thing, no university degree, no MBA, only your savvy work ethic, gift of the gab and good looks, then Sales in some form is a very obvious choice, and Real Estate is certainly high on most people list when they think of Jobs that they can do too make lots of money.

Some people have no idea what career to choose…or what suits them. Everyone just wants a job that gives them the ability to make as much money as possible, as fast as possible, but for some people, they spend a lifetime chasing their tail, jumping from one salary paying job to the next expecting to magically get rich somehow...

There is very little education on how to make money, and most people don’t know what a good opportunity or a dead-end opportunity is, and they tend to go with common opinion. Becoming a Doctor, Lawyer, Accountant etc is the fantasy of most Parents giving career advice to their kids but times have changed. People are now making their fortunes investing in Crypto, YouTube Creators, AI, Drop-shipping, Only Fans...etc... places our parents wouldn't even understand.

The one career path that even the Parents know you can make lots of money in, is Real Estate, and luckily or unluckily, the bar is not set very high to get into Real Estate. If you think you can do it, and can take the time and pay to do the online course to get your Real Estate License, then you're in. You can ether sell Real Estate yourself or Join an Agency...

Not many are told how hard it really is and after they try it out for a few months, they end up wondering if they have what it takes. People soon discover it's not exactly like the TV shows portray and 82% bail out in their first 12-18 months. It can take quite a few years of learning and hard grind to get good at Real Estate... but it's not that hard, it's just hard if you were impatient and didn't have anyone to show you what to do properly from the outset!

Does a mechanic of 25 years think it's hard to fix a puncture on a tyre and get the car back on the road in 20min? Easy for them right, because they know what to do. Would it be so easy for you if you've never changed a tyre or fixed a puncture before? How long would it take you? My point exactly... Would you go and throw yourself into opening a mechanics business never having learnt these things? They do in Real Estate...and that's the problem...

Big money doesn't come easy, I assure you! To find success as quickly as possible, you ultimately need a teacher / mentor. Someone who has walked the path already, who is willing to guide you until you can stand on your own two feet. You don't know what you don't know, and it can save you untold effort if you have someone to help you navigate everything, so you get to the end result (make some money) as fast as possible so you can continue...

There is a big scary gap between starting out in a commission only job and getting your first pay. How long it takes to start generating consistent income is all anyone really wants to know. All that is ultimately up to you of course, but, if you can find "a place" or "a person" that makes this process relatively quick (within a month or so), then this is the gold that most people are searching for... e.g. Start a thing, do the thing = Make money.

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Closing the Gap...

The grass is not always greener somewhere else, it’s the greenest where you water it. We've all heard that...because it rings true.

You have to decide in life, what Job you want to commit to, what fits you and what ticks all the boxes. Is it something where you help people, do it on your terms that doesn’t require massive amounts of capital investment on your part to get rolling and earn big money in the process?

Do you go into a Trade type business…which takes quite a few years of training on low income and can cost big money upfront to establish, like buying excavators, tools, equipment, trucks etc?

Do you open a shop which costs big rent every month, electricity, insurance, on top of buying stock for the shop, staff etc? You don't want to blow it right? It may be the only shot you ever get to take financially.

We all eventually get bogged down with mortgages, school fees, etc. Sometimes taking a shot when you feel you have the attitude, energy and willingness to make a proper go of it, may not be the right time financially. You just cant pull away and take a risk to throw yourself into a commission only Job because your not the only one on the boat. If you're on your own and it goes down, that's one thing...but...if you're whole family is relying on you, that's another entirely. Some never recover form a big push into business on their own and some wish they had done it sooner...

So, what if you don't have the money upfront to do any of that yourself? How can you remove most of the risks? What if you don't have years to wait to complete a Trade, Formal Degree or Masters etc? What if you have no way of even getting a loan to open a business yourself?

Joining a business that already has all of this market presence and infrastructure, and their willing to teach you through offering you a role in the business, is an amazing pathway into something that otherwise would be closed to you. What most people fail to understand coming into Real Estate is, you still need to prepare and treat the opportunity like its your business venture regardless. It's not a Job, but its still a set of skills and a proven process you need to learn to get good at it...

So, for the employer / teacher - where is the protection against industrial espionage?

Sure, most successful business owners don’t want you to know exactly how it all works either…terrified you might take what they teach you and try to set up as a competitor against them...which unfortunately, in this day and age is a big risk for most business owners…and they have been conditioned by life lessons to protect their interests, and rightly so I would say, especially in industries where the bar is set low to enter like Real Estate.

There are not many industries where someone can be say, a fitness instructor for 6 years, realise their is not much money in it, go do an online course with no prior training or experience and start selling Real Estate as soon as they pass.

Maybe the benchmark to allow people to get their Real Estate Certifications are set at the wrong point in someone's trajectory. Maybe they need to do a 1 month "how to" information course that cost $3k first, on how to sell Real Estate and what's involved, and only then, the ones that pass and want to progress to getting their Real Estate License will go on to enter the industry, determined to succeed knowing exactly what their facing? Na, that make too much sense right?

If what the Government is proposing in passing a law that see's non-compete clauses removed from all employment contracts from 2027, then what stops people coming into any business, learning the exact magic herbs and spices and leaving in 6 months, with the recipe under their arm, to set up their own thing?

A contract does...and it should, and it should be watertight, and enforceable!

If not, why does the legal system even exist if it can't be upheld? Where is our society headed if the Government is proposing things like removing non-competes?

A contract of agreement is a contract of agreement. If all parties relating to the agreement agree on the terms and conditions and sign, that's legally binding in anyone's language.

Can there be an overhaul of how a non-compete relates to certain circumstances with certain people, like, If someone is terminated or leaves a business within a short timeframe, then the non-compete becomes null and void (like within a trial period or something).

Could it be that a secondary release form can be generated by the employee asking the employer to sign it off so they can be released from the non-compete giving the reasons and circumstances as to why its important to abolish the restriction, and both parties can sign in agreement to null and void the non-compete.

If a non-compete in a contract that has been agreed to by all parities is not enforceable down the line, means nothing in the contract is enforceable, so the entire agreement is not worth the paper it's printed on and all contracts across the community, loan documents etc, etc can be torched right?

I would have thought it is imperative we create more laws around protecting business's. Business's pay employees, and business's and employee's pay taxes. If there are no business's, I hope the government has a plan on where their going to find more tax revenue... just a thought...

If non-competes are removed, It will be the wild west again and I think we will see even more small wars erupt in the community, businesses firebombed, people hurt etc... If there is no legal recourse, then I'm sure there will be recourse in other ways...it's human nature. It is stealing.

Why?

Unfortunately, I see this all the time in Real Estate now, young Aussie Agents (especially new immigrants) getting impatient, they want the world now, they want the cars...their chasing that mirage of quick success, and they don't care who's head they have to tread on to get there...

A year or so of learning the basics, steal a heap of data and know how, and off to set up in competition down the road with a few of their cousins. Is that right...? Just like that hey... apparently the Government thinks that's totally fine... No problem...

They're not interested in spending the years it takes to learn all the fundamentals or respect any trainer. They just want the money and notoriety now and buy the big house in the suburbs, live the Australian dream they were sold.

Unfortunately, these are the individuals that go on to give Real Estate a bad rep. They conduct themselves the same way in all dealings leaving a train wreck of bad experiences behind them, because they didn't learn the any of the values and respect needed to conduct business the right way. Their the ones you see pop up in articles in REB for Trust Account misuse etc...

The laws should be heavily geared toward protecting the teachers rather than the thieves. You know we have gone seriously wrong somewhere in society when taking IP of your employer is not just frowned upon anymore, it's being made legal for the thieves to steal. WTF...

It's like if you hurt someone badly who broke into your house and was trying to steal from you in your home, on your own property, and you are the one that goes to jail for protecting your family by hurting the thief. WT actual F... Just so everyone knows, I'm happy to go to jail if that goes down in my house...

We all know it's WRONG...but there it is...

See, the reason there is less & less opportunity for people in the world today (and it will diminish) is because employers are sick of being shafted when they go out on a limb and train someone else on how it's done (close the gap for them), hoping the trainee will be super grateful for being pulled out of obscurity and they can start to build "a thing" with some certainty that their time invested teaching will not be for 0...or even worse, turned against them as a competitor.

The next time someone comes along, genuine or not, and begs for an opportunity to work hard and be taught how to "close the gap"...the employer will politely close the door in their face and that will be that... "Fool me once, shame on you, fool me twice...shame on me". We all know that saying too. There will be no opportunity for anyone else... Nada...

Employers, deal makers, business doers, will all simply decide to hold their knowledge close, like the little guy who invents "a thing"…only to see all the plans for that idea stolen by an employee and mass produced in China, showing-up and being sold in every big department store. If that guy can't easily sue the other guy based on contractual agreements, that guy will never show any employee what he invents ever again or may close up the business, go on government benefits and go fishing instead!

Who loses? We all do… because that gifted smart inventor is no longer willing to teach...

The knowledge and know how will probably just remain within families from here on out. If you are not born into a family that can teach you how to get rich from "a thing" they have all be doing for generations and passed down within the family...then too bad. I hope you marry well.

There is an art in learning the fabric of why something is the way it is and respecting the process. It’s the art of being taught the method, how the people involved play their part, how the market receives that group who all work together to create success. Yes, it takes time...and that's ok...

The minute we make it not about that...it all crumbles.

If non-competes are removed from employment contracts, giving employee's / student's /contractors etc open slather to basically steal the know-how, systems and IP of the teachers / business owners, I wounder if the teachers will ever bother teaching anyone anymore? What about your kids that need a future? It won't be there for them.

What if your Kid started a business one day and the employees stole their ideas, data and set up in competition to them down the road. Would you think that's fine, no worries right? Wrong.

If you have a kid that has done that to someone else...are you proud of them?

The fabric of honour and respect is being eroded across society...

Anyone can see what the Government is proposing is just wrong. It is tearing at the fabric of capitalism. It's a communist way of thinking really. Their clearly saying that no one should have anything more than the next person, and if you do, it's now legal for anyone to take it and you can't do anything about it...like..at all... even if you have a contractual agreement to the contrary.

Even if they break into your home when your family is there...you can't do anything about it. Really? That's what the Government recons...

You know it's wrong, I know it...so why as a society do we let these laws slip into our lives? Who's out there fighting to stop it?

Last time I looked, we were a capitalist democracy...but, hey... they say believe half the things you see and nothing about what you hear...

Honour:

Just one of the things you notice when you go to Japan…how everyone praises their teacher. They understand that the teacher didn’t have to show them anything at all, so if they take the time to teach… then, the student is forever in their debt and the respect is unwavering and generational.

Loyalty, respect, honour and integrity are values that come before all else. There are people in Japan who's family have worked for the same company for generations.

Are temple's and churches not created to house the messages of thanks and give gratitude back to the teachers of the way? It's fundamental to society, not just for now, it has always been that way...

Take the Shaolin Monks for example. A Shaolin Monk is a Shaolin Monk because of what that represents. They are dedicated to the ancient ways of training Kung Fu (traditions) from a very young age, and everyone knows their training is the best and takes a lifetime of dedication to acquire...

If you were going to learn Kung Fu, and the teacher was a genuine Shaolin Monk, you know you're going to get the right knowledge, not some watered-down version from upstart wannbe's who stole some scrolls from the temple and decided to open a training school.

Would it have the same impact and would you be so ready to join if the teacher was a New York Monk? Do you want to learn Kung Fu from a New York Monk who said they spent a few years training as a Shaolin Monk? Does the market accept the New York Monks as the real deal? God no!

Should the Shaolin Monks allow one of their students to take all their generations of scrolls and knowledge to establish themselves as a direct competitor? I would say that's how wars start... So why allow this in contracts? The New York Monk has not lived the way of the Shaolin.

Shaolin Monks protect their brand, and their brand becomes their identity, and their identity becomes the brand. Symbiosis. Honour.

You don’t see a Shaolin Monk setting up a training school without their masters blessing right? They do it with respect and honour, even if it means 30% goes back to the temple. For that, the teacher allows them to use all the knowledge and scrolls without causing a war. That's business.

The student doesn't cut their trainer out and try to set up New York Monks in the USA. You don't even see a Shaolin Monk accepting a better offer from New York Monks and jumping ship to teach over there instead...no... A Shaolin Monk is a Shaolin Monk and they take ultimate pride and honour in being one, because of what it represents.

Your Roast Lamb is the Best Roast Lamb I ever had.

Say I invite you to my house for dinner and I cooked you a Roast Lamb.

We all sit down to eat, and you have never seen or tasted any Roast Lamb that good. You sit, you eat, you laugh, you live and at the end…you congratulate the cook for such a wonderful meal.

You ask me, how did you cook the Roast Lamb like that? I share with you that it’s a recipe that’s been handed down from the expert cooks that I studied under for years. It’s been our business to cook Roast Lamb for years now, and we pride ourselves on the tradition and we have a small chain of restaurants dedicated to cooking Roast Lamb.

You take a look around and you realise this family is quite well-off, assumingly due to cooking this Roast Lamb…so…you ask if were hiring and I say yes, we are.

You tell me you don’t have much going on in life right now, no money, but you do have work ethic and you’re willing to learn. You ask me if I can show you how to cook Roast Lamb like that, then you will dedicate yourself to the business, work hard and represent the brand with integrity…and you tell me you want to commit and go all-in.

I agree to hire/teach you, I think you will do ok, but the terms are the same as they were for me. If I show you how it’s done, every time you cook a roast from now on, you give me 30% of the taking. You agree. It’s better than the alternative. You tasted the proof. You want that for yourself. You can see it will work…so you’re willing and say yes and sign.

Inevitably, I bring you in and give you the exact recipe that works in pre-packets, that all you have to do is throw it over the Lamb when you put it in the oven (Like KFC’s 7 Secret Herbs & Spices) and now your cooking legendary Roast’s, getting praised by your customers, friends and family. It just seems so easy. Your bank account is now bursting with money and there is a line around the corner for your Roast Lamb…

You get super busy, yes, you’re working hard now, business is really good, better than you ever experienced before, and you finally learnt what that secret recipe is, but, that greedy thinking starts to creep in. You start thinking “I'm doing all the work, why should I share anything with anyone else if it’s my time I’m putting into all this?” “I know what to do now…I don’t need them”…

Sounds a bit like Gollum from Lord of the Rings right...

Once that thinking creeps in…the rot stats to spread. All of a sudden, you don’t think any of this setup is fair anymore. All of a sudden, now that money is no issue for you anymore and you have half an idea, and your no longer desperate to find some form of success, your focus has switched on how to get more…more…more… and inevitably…you start thinking of ways to cut the owner out and start your own Lamb Roast restaurant.

Sad really...no respect. Short memory. You cant think back to when you had overdue payment letters piling up that you were behind on all your bills... You forgot that you were on Government benefits and couldn't even afford to get to Job interviews. You forgot the stress of not being able to pay your rent and wondering if the next letter was an eviction notice. People forget so fast... They make up all sorts of rational reasons as to why they are justified...

See, the owner already prepared for this happening. It's called experience. This is why he had you sign a contract in the beginning. He was hoping for the best but preparing for the worst. The reason he has only kept a small chain of restaurants is because this is certainly not the first time he has seen this happen. He knows people get overly greedy, impatient and resentful very quickly, especially when there is big money involved. Its hard to find the right people...

He knows it’s not their fault entirely, it’s the society that has conditioned us all to become this grab, grab, grab society. Instant gratification. It’s almost written into the script… but, he is protected because he is covered by the expensive contract he had drawn up by the lawyers to protect his business and the business know-how.

The contract is legally enforceable. He doesn't care if you go do something else if you don't like it here, but you can't set up in competition knowing what you know by starting another Lamb Roast Restaurant up the road. That's the agreement. That's the condition of teaching. Everyone signed.

It’s just disappointing that the art of business is being lost...The honour of society is being lost… It wont end up well for any of us or our families futures.

• Honour

• Loyalty

• Integrity

• Work Ethic

• Being Grateful

• Respect

These are the traditions in business that are being lost...and when you have none of these values yourself, then you certainly won’t run a successful business for long, you can’t….it’s just a matter of time. Your dishonour will always work against you.

Ask yourself, if you’re doing well, ask why you’re doing well? Who else in your life showed you how to cook a roast? Who helped you (hard cash in the bank) for the better when everyone else turned their back on you. Ask yourself if that’s worth protecting? Ask if it’s worth honouring? Did you honour them or burn them?

How it should look...

So, you stay with the owner/trainer for your entire career, working hard on making the business even better and, naturally, it’s gradually handed over and passed on to you. The business expands under your guidance and becomes even more robust and powerful. Everyone wins. Everyone is grateful, everyone has integrity and success comes naturally.

You build your teams, you honour your agreements and people know you do. It attracts more business and more opportunity and more people want to work for your company. Over the years you have amassed wealth for your family, and you have done far better than you ever expected…all because someone agreed to teach you how to cook a roast.

Conclusion:

Should the students be allowed to steal all that know-how and compete against the trainer with no legal recourse? The Government thinks so. I'm not sure about you, but for me that's blatant disrespect, dishonour and deserves to be legally challenged.

I'm not sure I'd want to use a business that's run by students and not teachers...

All teachers / inventors / owners have the right to protect their knowledge and should have grounds to respectfully challenge anyone that agreed to the conditions of training before they started...

There is no fast way to the top. We all need people to help and there is always a price to pay to get there. Some buy into a business with know how in place already, some work toward it themselves from scratch and some get taught / trained. It's a journey no matter what.

We need to abolish any though of any laws that tear at the fabric of our society.

Removing non-competes from contracts shouldn't even be entertained, in fact, the law and severity of the punishment for breaching the conditions of non-competes should be stronger.

Where is the compensation to the employers for these breaches? Why isn't it a mandated minimum $100k compensation payout to the employer if someone has been found guilty of their non-compete breach. This should be the minimum price any employer would be willing to be compensated for the knowledge they passed on, if not more in more serious situations.

Remember, only a thief would create laws allowing thieves to steal.

Look after what you have. Look after the people that helped you find success and tipped their time and effort into training you, to help you succeed in life. Your commitment should be too honour an respect that! See, if you quietly prayed for it to come, and it came when you needed it most…don’t spit in it’s face… How many of you say you put vibes out into the universe that something has to go your way and on the same day or shortly after, you're given an opportunity. It's an opportunity of fate, and karma is the enforcer of the gift.

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