The High Court of Delhi re-affirms un-enforceability of post-termination non competes and emphasises the need for balance between an employer’s confidentiality interests and employee mobility

The article elaborates on a recent ruling by the High Court of Delhi, which reaffirms that non-compete clauses in employment contracts are unenforceable under Indian law. The court held that any contractual term restraining an employee from lawful employment post-termination is void, emphasizing that employees have a fundamental right to seek better employment opportunities. While confidentiality and trade secrets deserve protection, overarching restrictions on employees’ future employment are impermissible. The judgment serves as a reminder to employers to carefully draft post-termination restrictions, focusing on safeguarding confidential information rather than relying on broadly drafted non-compete clauses.

Click here to read the full article.

MORE ARTICLES BY THE AUTHOR