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Non compete clause in my appointment letter
24-Apr-2023 (In Labour & Service Law)
Hello,
I am currently serving my notice period in a financial organization. There is a non competing clause in my appointment letter that restricts me from working in any other financial organization for 6 months post my employment in my current organization. I wanted to check if this is legally binding and enforceable on me.
To answer your legal question: Whether or not the employer can enforce the non compete clause will depend on the nature of the work you performed for the employer and the reasonability of the non compete clause itself.
The legal position regarding non compete clauses in employment contracts is as follows:
Section 27 of the Indian Contract Act, 1872 states that every agreement by which an individual is restrained from exercising any lawful profession, trade or business of any kind, as void. Which means, contract cannot state that the party will not be able to practise a particular profession or trade. The contents of the employment contract needs to be reviewed
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Adv. Anubhav Kathuria
Delhi | 1000+ Answers
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Hello Sir,
In India such clauses are considered as a restriction upon the employee. Every citizen of India has the right tot practice any profession, trade or business as it's fundamental right guaranteed under the Constitution of India. So employer can not impose such restriction.
If any action is taken, it is totally defendable.
Best,
Sishmita
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Adv. Sishmita Kumari
Delhi | 100+ Answers
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Hi , have you received any legal notice from them ? , if yes then share it to me , request you to be careful in replying the notice , don’t admit any thing in your reply , what was your designation ?
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Adv. Dev Yati
Delhi | 5+ Answers
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