Legal Question in Employment Law in India

Non-Competition and Non-Solicitation Agreement

I had to sign a ducument called ''Confidentiality, Intellectual Property and Non-Competition Agreement'' while joining a private limited organigation. One of the clauses of this agreement says ''During his or her employment and for a period two years thereafter employee shall not without the prior approval of Employer in writing render services to a direct competitor.''

My question is:

a) What is the validity of such a clause in the court of law?

b) If I join a competitor organization, what steps can the previous employer take and how strong can be my defence against any such eventual step?


Asked on 1/28/07, 2:04 am

1 Answer from Attorneys

Re: Non-Competition and Non-Solicitation Agreement

Given clause is valid and binding in law.If you join competitor company then previous company can prosecute you for breach of contract and can claim damages from you.

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Answered on 1/28/07, 10:42 am


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