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gaurav (student)     12 January 2014

Non compliance of non compete agrement

Effect of non compliance of non compete agreement during cooling period ?

Should an employee take an undertaking post cooling of period? 

An fellow employee willingness to join the same business & he has not been persuaded to join it. What will be the effect of non compete ?



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 1 Replies

Kumar Doab (FIN)     12 January 2014

What do you mean by cooling period: Is it Notice Period?

Is it not mandatory to sign any agreement any time during employment including notice period.

Employee can decline any clause or any agreement.

Non Compete clause/agreement may very well operate during period of employment.

Indian courts have consistently been denying enforcing Non Compete clause/agreement post termination of employment as it hits right to earn and source of livelihood and Indian Contract Act.

Before the employee signs any clause/agreement it shall be appropriate to show the copy to a labor consultant/service lawyer, law firm specializing in such matters and let the lawyer go thru the language and statements and opine thereafter...............

 

The clauses/agreements on Non Solicitation, Data Protection etc..........................may be valid post termination of employment.

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