Non-Compete Clause For 5 Years
1 year ago
With my previous employer, i have signed an appointment letter with a clause not to join any company for 5 years from date of termination/completion of service bond. I have sucessfuly completed my contract period, issued with an releiving letter. Latter i joined a new company which is a MNC with 10 fold turnover delivering similar services (not the direct competitor to my previous company) . I along with my current company have been served with a legal notice with 50 lakhs penality citing reasons for sharing of confidential information (statement not true/ No evidence or basis provided). Please advise, if this non-compete clause is valid as it is restricting my livelihood and a clear voilation of section 27 of indian contract act
In your case, the non-compete clause of 5 years after termination of service is quite long and may be considered unreasonable. Additionally, if your current company is not a direct competitor to your previous employer and there is no evidence of you sharing any confidential information, it is difficult for your previous employer to prove that you have violated the non-compete clause.
You should consult with a lawyer who is well-versed in employment laws to get a better understanding of your legal rights and options.
Thank You
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