Work agreement
4 years ago
My current employer get us signed new work agreement in which he put new condition to not to work in competing company or company of same nature for 1 yr once left the job, but my town is small and hardly 3 BPO companies, for some reason I m not happy here but no other choice to move to other city and to earn I must work in other companies.
In this case such agreement holds any validity in court as it is clearly restricting an individual from employment which is legal??
One has experience of 5-6 yrs will obvious to work in same domain but he put clause not to work in same domain. Other company has nothing to do with present employers type of work or client.
A.Dear Sir,
Section 27 of Contract Act bars such agreement. Please read the following.
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Section 27 in The Indian Contract Act, 1872
27. Agreement in restraint of trade, void.—Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void. —Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void." Exception 1.—Saving of agreement not to carry on business of which goodwill is sold.—One who sells the goodwill of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the goodwill from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business. 16 [***]
Please take PAID phone call with me through VIDHIKARYA and get more legal guidance.
Section 27 of Contract Act bars such agreement. Please read the following.
==========================================================================
Section 27 in The Indian Contract Act, 1872
27. Agreement in restraint of trade, void.—Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void. —Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void." Exception 1.—Saving of agreement not to carry on business of which goodwill is sold.—One who sells the goodwill of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the goodwill from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business. 16 [***]
Please take PAID phone call with me through VIDHIKARYA and get more legal guidance.
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