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Author Topic: non-compete clause post termination  (Read 530 times)

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Offline legalquest

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non-compete clause post termination
« on: February 23, 2017, 03:31:01 AM »
Hello,

I currently work at an Indian IT company (ABC) as a software developer and have the following non-compete clause in my agreement.

......I agree that for a period of six (6) months following the termination of my
employment with ABC for any reason, I will not:

a. accept any offer of employment from any Customer, where I had worked in a professional capacity with that
Customer in the twelve (12) months immediately preceding the termination of my employment with ABC.

b. accept any offer of employment from a Named Competitor of ABC, if my employment with such Named
Competitor would involve me having to work with a Customer with whom I had worked in the twelve (12)
months immediately preceding the termination of my employment with ABC.

For the purposes of this Clause, "Named Competitor" shall mean the following entities and their wholly owned
subsidiaries:-
1. XYZ
2. XYZ
3. XYZ

Section 27 in The Indian Contract Act says that such agreements are void.
Section 27 in The Indian Contract Act, 1872
27. Agreement in restraint of trade, void. Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind,is to that extent void.

In view of the non-comete clause in my agreement with ABC and section 27, can you please advice on the following:
a) is the non-compete clause applicable if I work for a customer through another party which is not a named competitor
b) the legal validity of non-compete agreement in India post termination of contract
 
Private emails are welcome.

Kind Regards,

Offline riteshmaity

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Re: non-compete clause post termination
« Reply #1 on: February 23, 2017, 11:10:25 AM »
After cessation of your current employment, you can work anywhere you want and even join your competitor on the next day. You are very right about Sec.27 of Contract Act. There is no legal validity of such agreement/ contract made between you and your employer.
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