What is Non-Compete Clause?

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A non-compete clause restricts an employee from working for a competitor, or starting a competing business, for a period after leaving. In India, section 27 of the Indian Contract Act, 1872 makes agreements in restraint of trade void, and courts have generally not enforced post-employment non-competes. Restrictions during employment are treated differently.

Example

An offer letter says you may not join a competitor for two years after leaving. Such a post-employment restraint is generally hard to enforce in India, but confidentiality duties and during-service exclusivity can still apply. Take legal advice for a specific clause.

See employment bond and notice period.

Sources

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.