Indian startup employment agreement has 36 month non compete in travel industry. Can they actually stop me from starting my own company?

[User_154b0bb9]

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User_154b0bb9
PARTICIPANT
May 10, 2026 at 5:38 am

I work/worked as a Founding Engineer at a travel startup in India.

The company has been facing funding issues recently. From Feb 2026 to April 2026, I was verbally asked to take a 50% salary cut because they were low on funds. There was no formal email, document, or amendment for this salary cut. I also received increments earlier during employment, but those were never formally documented either.

The company:

* did not provide salary slips regularly
* handled many HR/payroll matters informally
* recently asked me to start looking for other opportunities because of financial issues

Now I want to start my own travel startup.

However, my employment agreement contains:

* a 36 month non compete clause
* restrictions on working in similar businesses
* restrictions even on family/friends/affiliates participating in competing businesses
* confidentiality and IP assignment clauses
* non solicitation clauses

The agreement also says that the founders/company can provide a written NOC permitting exceptions.

A few important points:

* I am still technically employed right now
* I have NOT copied any company code/data/customers/repos
* I do NOT intend to use confidential information
* I only want to start independently after leaving
* The startup space is travel tech

My questions:

1. How enforceable are these 36 month non compete clauses in India after employment ends?
2. Does the company’s informal handling of salary cuts/payroll weaken their position legally?
3. Since I am still employed, can I legally register a company before resignation if it is not operational yet?
4. How risky would it be to negotiate for an NOC/release?
5. What kind of lawyer should I consult for this situation?

Not looking for ways to violate the agreement. Just trying to understand the realistic legal risks before making any move.

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[Desiknight9081]

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Desiknight9081
PARTICIPANT
May 10, 2026 at 5:45 am

Lawyer here. In India, post-employment non-compete clauses are generally difficult to enforce, especially broad restrictions like a 36-month ban on working in the same industry. The company usually cannot completely stop you from starting your own business after you leave, provided you do not use their confidential data, code, customer lists, or trade secrets. However, confidentiality, IP, and reasonable non-solicitation clauses can still be enforceable. Since you are still employed, the bigger risk is if the company claims conflict of interest or competing activity during employment, so actively operating a competing startup before resigning may create issues. Merely registering a company may not itself be illegal, but it depends on the wording of your agreement.

The company’s informal salary cuts, lack of proper payroll records, and missing salary slips may weaken their position in a dispute, though they do not automatically cancel the contract. It is safer to resign properly, avoid using any company information, and if possible, seek a written NOC/release.

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