In India, non-compete clauses in employment contracts are generally viewed with skepticism by courts. According to Section 27 of the Indian Contract Act, 1872, any agreement that restrains someone from practicing a lawful profession, trade, or business is void to that extent. This includes non-compete clauses, which are seen as a restraint on trade and therefore, typically not enforceable.
Key Points:
During Employment: Non-compete clauses that restrict an employee from engaging in competing activities during the term of their employment are generally considered enforceable.
Post-Employment: Non-compete clauses that restrict an employee from working with competitors after the termination of employment are usually not enforceable.