Background: WiseTech is the ASX-listed logistics software giant best known for its CargoWise platform, used by freight and supply chain companies worldwide. Founded in 1994, the company has completed more than 40 acquisitions and is now worth around $13 billion. Earlier this year, WiseTech announced plans to cut around 2,000 jobs - making it one of Australia's biggest AI-related workforce shake ups.

What happened: And now, 200 of the affected employees have been handed a list of companies they are not allowed to work for after leaving WiseTech. It all comes down to a non-compete clause in their contracts - which their union asked to be removed.

What else: While WiseTech agreed to ease some of the restrictions... it hasn't eliminated them entirely. So, the former employees still can't join certain businesses that compete directly with specific WiseTech products.

What's the key learning?

💡 Non-compete clauses are the legal protections that businesses use to stop employees from working for a competitor right after leaving the company. They're designed to prevent staff from taking valuable knowledge, relationships and insights about a company's products to a rival business.  

💡 These clauses become much more controversial when employees are made redundant. While businesses argue they protect IP and competitive advantages, critics say they can make it significantly harder for workers who have been let go to find new employment in their industry.  

💡 The irony is that WiseTech's biggest competitive threat may not be its traditional rivals at all. Investors are increasingly worried that AI could eventually substitute parts of WiseTech's software offering, helping drive the company's share price down more than 45% this year.