I’ve been with a startup for a while and recently received an offer from another company in India. I’m leaning towards accepting it, but my current startup’s founder says I can’t because of a non-compete agreement I signed. He’s threatening legal action if I join. The non-compete says I can’t work for any company that directly competes with them for two years, but it doesn’t define what a “competing business” is. Does this mean any similar business? The agreement also doesn’t mention any geographical limits. It doesn’t say whether the restriction applies only in India, my city, or globally. Is this non-compete clause reasonable?

Apni Law
Apni Law
Law Forum › Category: Labour & Service › I’ve been with a startup for a while and recently received an offer from another company in India. I’m leaning towards accepting it, but my current startup’s founder says I can’t because of a non-compete agreement I signed. He’s threatening legal action if I join.

The non-compete says I can’t work for any company that directly competes with them for two years, but it doesn’t define what a “competing business” is. Does this mean any similar business?

The agreement also doesn’t mention any geographical limits. It doesn’t say whether the restriction applies only in India, my city, or globally. Is this non-compete clause reasonable?

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Apni Law Staff asked 2 months ago

I’ve been with a startup for a while and recently received an offer from another company in India. I’m leaning towards accepting it, but my current startup’s founder says I can’t because of a non-compete agreement I signed. He’s threatening legal action if I join.

The non-compete says I can’t work for any company that directly competes with them for two years, but it doesn’t define what a “competing business” is. Does this mean any similar business?

The agreement also doesn’t mention any geographical limits. It doesn’t say whether the restriction applies only in India, my city, or globally. Is this non-compete clause reasonable?

1 Answers
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Best Answer

Apni Law Staff answered 2 months ago

Indian law generally allows non-compete agreements, but they must be reasonable in scope and duration. Without a clear definition of “competing business” or geographical limitations, the non-compete agreement may be overly broad and unenforceable. You should consult with a lawyer to determine the legality and enforceability of the clause in your specific situation.

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