I worked for a company for six months after completing training. Unfortunately, I had to leave due to health issues and joined another company that deals with similar products. During training, I signed an agreement with my previous company that prevented me from working with competitors even after leaving. Can they take legal action against me? Is this agreement a restriction of trade and against Indian law?

Apni Law
Apni Law
Law Forum › Category: Labour & Service › I worked for a company for six months after completing training. Unfortunately, I had to leave due to health issues and joined another company that deals with similar products. During training, I signed an agreement with my previous company that prevented me from working with competitors even after leaving. Can they take legal action against me? Is this agreement a restriction of trade and against Indian law?
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Apni Law Staff asked 3 years ago

I worked for a company for six months after completing training. Unfortunately, I had to leave due to health issues and joined another company that deals with similar products. During training, I signed an agreement with my previous company that prevented me from working with competitors even after leaving. Can they take legal action against me? Is this agreement a restriction of trade and against Indian law?

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Best Answer

Apni Law Staff answered 3 years ago

Yes, your previous company could potentially take legal action against you for violating the non-compete agreement. However, the enforceability of such agreements in India depends on factors like its scope, duration, and the specific nature of the products involved. Indian law generally allows for reasonable restrictions on trade, but overly broad or restrictive agreements may be considered invalid.

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