Non-Compete Agreement

During employment, yes. Post-employment, standard broad non-competes are generally void under Section 27 of the Indian Contract Act. Enforceable post-employment restrictions are narrow: protection of specific trade secrets, non-solicitation of named clients, and limited geographic and time-bound restraints in specific contexts.

A non-solicitation clause prohibits a departing employee from approaching your existing clients or other employees for a defined period. This is more likely to be enforceable than a broad non-compete because it protects a specific identifiable interest.

Specificity. A well-drafted clause identifies the specific clients, territories, or trade secrets being protected, restricts only what is necessary, and is tied to adequate consideration.

Yes. In the context of a sale of a business or practice, the courts recognise that the buyer has purchased goodwill and client relationships, and a non-compete protecting that specific purchased interest is enforceable for a reasonable duration and geography.

Garden leave requires a resigning employee to remain employed (and paid) but not actively work during their notice period. It prevents them from joining a competitor immediately while the employer secures client relationships and ensures handover.

The aggrieved party can seek an injunction and damages for losses caused. The strength of enforcement depends on how clearly the protectable interest is defined.