Can a non-compete clause be enforced after employment termination?

Non–compete provisions for the term of employment are not regarded as ‘restrictive covenants’ under Indian law. However, having such provisions applicable after a person leaves the organisation is against the Indian Contract Act, and, therefore, not enforceable.

How does a non-compete work if you quit?

A typical non-compete agreement forbids an employee from working in a competing business after leaving the company. The agreement usually specifies a period of time after the employee leaves, and a geographic area in which the employee must refrain from competing. It may include other limitations.

How long is a non-compete enforceable?

In contrast, in many industries, a Non-Compete with a duration of 6-months will be considered reasonable, and therefore enforceable. The general rule is that the duration of the agreement should not exceed the time reasonably necessary to protect the employer’s legitimate business interests.

Can an employer restrict me from working for a competitor?

No competition clauses prevent an employee (or former employee) from competing with the employer. A clause of this type which applies during the period of employment will be valid where it is reasonably necessary and adapted to protect the employer’s business interests.

Does getting fired cancel a non-compete?

Many employees think that, just because an employer forced them to sign the agreement or be fired, that they are not bound by a non-compete agreement. That’s just not true. Continued employment is valid consideration for a non-compete agreement in Florida. Florida statutes presume that non-compete agreements are valid.

What happens if you break a non-compete agreement?

Breaking non-compete agreements will cause you to be fired resulting in losing your job. Under the terms of your contract, if you had signed it, you have given the facts that you will not work for another company. The agreement is still valid even when you leave the company.

Can my employer force me to sign a non-compete agreement?

Many employees think that, just because an employer forced them to sign the agreement or be fired, that they are not bound by a non-compete agreement. That’s just not true. Continued employment is valid consideration for a non-compete agreement in Florida. Florida statutes presume that non-compete agreements are valid.

When to have an attorney prepare a non-compete agreement?

If you want employees to be bound by non-compete agreements, the best course of action is to have an attorney prepare them, and to have them reviewed at least once a year for any changes necessary. An unenforceable non-compete is worse than useless – it is dangerous to the employer who tries to enforce it.

What are the non-compete clauses in employment contracts?

In addition to preventing you from signing an employment contract with a competitor of your former employer, non-compete clauses can prevent you from: 1 Working as an independent contractor with a competitor. 2 Becoming the owner or part-owner of a competitor. 3 Investing in a competitor. More