Non Competition Covenant-Does it hold good in indian court of law? - CiteHR
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Please suggest if a company can restrict the employment of an ex employee to join or assist in any form any other company carrying similar nature of business? Does such a clause in the offer letter hold good to proceed in a court of law? If yes whether there is civil/criminal offence. Does the hiring company have any legal obligations? Thanks
Hi Purba,
Rather than mentioning it in the appointment order it should be a separate agreement signed by employer and employee. The Non Disclosure Agreement (NDA) is governed by the Indian Contract Act, 1872. NDA must be stamped to be a valid enforceable document.

Hi Purba,
This can be done by making an NDA agreement. for assistance in preparation and compliying all labour laws you can contact me.

Consultant Labour and HR compliance

Dear Purba,
You can put a clause of non-disclousre facts & figure in the appointment letter. But to hold it in order, you should take a "Fidelity Bond" from Covenant Employee according to the job responsibility of the position.
The imposition of condition in bond should not be an infringement on either Article 19(1)(g) of the Constitution or Section 27 of the Contract Act or otherwise shall be treated void.

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