Is a post-resignation non-compete enforceable in India?

Offer letter bans you from joining competitors for 12-24 months after you leave? See what Section 27 says, why courts are cautious, and a narrower clause.

The risky clause

For 24 months after leaving, the Employee shall not join or work with any competitor or client of the Company anywhere in India.

Why it is dangerous

Section 27 of the Indian Contract Act 1872 voids agreements that restrain a lawful profession, and Indian courts have generally been reluctant to enforce non-competes that apply after employment ends. Restrictions during employment, and confidentiality duties, are treated differently. Do not assume a clause is void without a lawyer's view, and do not ignore it either.

Safer clause to propose

During employment the Employee shall not work for a direct competitor. After employment the Employee shall remain bound by confidentiality obligations but is free to work anywhere.

Message to send

Hi [HR Name],

Could the non-compete be limited to the period of employment, with confidentiality obligations continuing after I leave? A 24-month all-India ban is broad. Thank you, [Your Name]

Frequently asked questions

Are non-compete clauses valid in India?

After employment, they are often unenforceable under Section 27, but results depend on the facts. Confidentiality and non-solicit terms are treated differently.

Can I be sued for joining a competitor?

An employer can try. Get legal advice on the exact clause and your role before you join.

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