LCI Learning
Master the Art of Contract Drafting & Corporate Legal Work with Adv Navodit Mehra. Register Now!

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Mangesh (Jr Officer Accounts & Audit)     29 May 2013

Service agreement

Respected Sir,

In my Employment Agreement which is not registered, there is one clouse that after resignation you have not to work for 5 years in same field ( i am working in Fertilizer company as a accountant) is it binding upon me. My orignal Agreement is not sign by me, i have sign only on xerox copy. Please give the answers

Regards

Mangesh



 1 Replies

Kumar Doab (FIN)     29 May 2013

 

 

---Secondary evidence may be given of the existence in certain conditions;

 

 

---The validity of Non Compete Clauses during period of employment with same employer with whom agreement has been signed is valid.

Post termination of employment: an agreement, which restrains anyone from carrying on a lawful profession, trade or business, is void to that extent. Under section 27 of the Indian Contract Act, 1872 agreements in restraint of trade are void.

 

Indian courts have consistently refused to enforce post-termination non-compete clauses in employment contracts, viewing them as "restraint of trade" impermissible under Section 27 of the Indian Contract Act, 1872, and as void and against public policy because of their potential to deprive an individual of his or her fundamental right to earn a livelihood.

 

 

 5 Years is a long time.

There has to be sound rationale for putting a restrain for such a long period of time.

 

It shall be appropriate to show the agreement to a competent and experienced labor consultant/service lawyer having expertise in such matters. The lawyer who has gone through the contract can advice you the best.


Attached File : 568530468 417759075 validity of employment bonds.pdf, 568530468 background paper.pdf downloaded: 138 times

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register