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Non-Compete Clause
Human Resources » Capacity Building

Chrm Message From: kanojiaM Total Posts: 18 Join Date: 07/01/2009
Rank: Executive Post Date: 13/12/2011 04:08:01 Points: 90 Location: India
Dear all,
Please let me know the importance of the Non-compete clause in an employment agreement for Senior Executives of the company.
Do we have any (court) cases in India where the organisation has won a case against an employee for joining competition within the stipulated time period as specified in the employment agreement.
Warm Regards

M Kanojia

Chrm Message From: Venugopal Total Posts: 2 Join Date: 07/01/2009  
Rank: Beginner Post Date: 13/12/2011 06:08:53 Points: 10 Location: India

 You cannot prevent any employee from joining any Company, even if it is your competitor. By doing so, you will be violating Article 19 of the Constitution of India. Instead, you must take positive steps within your Organization to keep your employees motivated and ensure that your terms and conditions are better than those of your competitors.

- Venugopal Mani

Chrm Message From: sateesh_sala Total Posts: 1 Join Date: 07/01/2009  
Rank: Beginner Post Date: 15/12/2011 00:30:15 Points: 5 Location: India

Dear friends,

this clause striclty speaking not enforceable as our Indina laws does'nt recognise the torts and at the same time it aginst to fundantal right as enshrined in our constitution. apart from these is also against the section 27 of the indian contract act. even inspite of all these, we can make him liable if the trade secrets are leaked for which we need to have the confidential clause in the employment agreement by virtue of that the employee has to strict to it. if there is any voilation, we can obtain injunction aginst him and liable for damages.


this is all the above for your kind information and note.