NDA & Non-compete Clause In Termination Letter

Hi Mathew,
Interesting quote. Is there a law to back it up?
Usually, we carry forward the Non-Compete clause to a period of 2/3 yrs post exit date.
Hey Pradnya,
Two suggestions:
1. Add a statement (if really required) in the termination letter, 'Please abide to the NDA and Non-Compete clauses signed by you during appointment'. Which is subtle and reminds him/her of the clause.
2. Create another letter mentioning the clauses, and get it signed by the soon to be ex-employee while exit process.
Cheers,
Nischala

Nischala,
Mathew has been very detailed in his exemplification with cases in point.. Clearly there is legal precedence in the topic and that is a great start.
WRT to your suggestion no 1: "The Supreme Court in Superintendence Co. of India v. KrishunMurgai. AIR 1980 SC 1717 has ruled that under Section 27 of the Contract Act. a service covenant extended beyond the termination of the service is void"
Same holds true for suggestion No 2 as well... if the employee is smart, he/she will not sign any such document.
regs.

Nischala.The law in this regard is article 19(g),21 of the constitution ,sec 27 of the Contract Act and several case laws like the one referred by Mr Madhu and others.
Varghese Mathew