I worked for a company in India that provides manpower services. My offer letter had a clause saying I can’t join or start a similar business for a year after leaving. If I break this, I have to pay ₹2 lakhs. Is this clause legally valid?
Best Answer
Yes, the clause is likely legally valid under Indian law. Non-compete agreements are permissible if they are reasonable in scope and duration. A one-year restriction and a ₹2 lakh penalty may be considered reasonable, but ultimately, the validity depends on specific factors like the nature of your work and the company’s business.
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