Started working in a competitor firm now previous company threatening
24-May-2023 (In Labour & Service Law)
I was working in company for past 4 years. Now i quit the organisation after serving due notice period. There was a clause in my contract that i can't join any competitor company for 1 year. Now i am working in competitor firm but they are threatening me. What action can they take?
Such clauses cannot be enforced in Court. These clauses are known as non-compete clauses, and are quite popular abroad. However, these clauses cannot be enforced in India as they are contracts in restraint of trade, which are illegal under Indian law. You have nothing to worry about.
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