Community › Forums › Legal Advice India › Company signed non-competing agreement but got an offer from competitor
- This topic has 12 replies, 9 voices, and was last updated 1 year, 3 months ago by
Megamaster2414.
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PPritistar440
PARTICIPANT
March 20, 2025 at 2:10 amHi I a marketer at a toy company and had resigned last month as I got an offer from a company 50x larger than the old one which also happens to be one of the companyโs competitor. My company literally copy their products and strategies.But I had signed non-competing agreement with my old company during the time of joining and I am afraid of getting into any legal problems although itโs unenforceable as per Indian law. But there are loopholes through which company can intervene like data theft which obviously i have none but what if they falsely allege me.
P.S. – I resigned because my boss also the founder profaned at me and thus not ended un a good terms but I did served my notice period.
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HHappyshark11
PARTICIPANT
March 20, 2025 at 2:15 amYou are free to join any company of your choice, as non-compete clauses are generally unenforceable in courts. -
MMegamaster2414
PARTICIPANT
March 20, 2025 at 2:16 amUnless they spent money to train you specifically (example: airline sending pilots for training), non competes are not enforceable in India. You have a right to livelihood.Tip: Do not under any circumstances disclose your new employer or other details that can hint about it. Not even to your best friend in office. Tell them you got a job in Dubai or another believable story. Do not update your LinkedIn till 6 months after joining the new employer.
While legally any decent lawyer will win this fight for you, why even let it get there! Be smart.
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PPritistar440
OP
March 20, 2025 at 9:22 amThanks that helps I am just afraid of them accusing me of stealing or passing on the data to the new employer, although I handed over everything to them there are few things that may point finger at me like exchanging documents over whatsapp with my founder thatโs still in my phone.Although I can accuse or backfire them of stealing competitor data (same company i am joining) through an amazon representative.
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MMegamaster2414
PARTICIPANT
March 20, 2025 at 10:26 amUnless they can pinpoint what exactly is the data you stole AND that data is actually found in your possession, nothing can be proven.Once again, technically law is on your side. However keeping them in dark about your next steps is the best way to avoid retaliation. Let your brain lead, not ego! All the best.
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CCleverbhuvan1124
PARTICIPANT
March 20, 2025 at 2:19 amIs your old employer very small, or are you a very senior employee (like someone who reports directly to CEO, head of country, etc.If not, most companies won’t want to invest resources in a legal battle against you.
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PPritistar440
OP
March 20, 2025 at 9:21 amTheyโre both indian start ups, the ex employee is in MP and the new one is in MH
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SSarangdude644
PARTICIPANT
March 20, 2025 at 2:22 amFirstly, In the non compete is there any time limit which has been fixed regarding non-joining any competitor.Secondly, to be safe from any action from your previous employer, write an email to them informing that you’ve completed your notice period and handed over any data you had with you and now you don’t have anything with you. If possible, get a positive response on it by the HR.
Although a non compete agreement qua the job change is unenforceable before indian courts, but the process of fighting a case is the punishment. So I would really recommend to remain on good terms with your previous employer and try to get everything in writing to strengthen your case.
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CCalmeagle9213
PARTICIPANT
March 20, 2025 at 3:38 amNon-competes at your level are unenforceable. Just go ahead and join man! I regularly advice clients on incorporating such clauses in the employment agreement knowing very well that they are unenforceable. It just acts as a detterent, nothing more. But if they go legal, you have no option but to go legal as well. Just don’t worry, law is in your favour.I am a lawyer.
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WWisekavya5258
PARTICIPANT
March 20, 2025 at 4:08 amNot enforceable in India.-
VVikasknight404
PARTICIPANT
March 20, 2025 at 9:05 amAny law which states this or any references of past cases?-
CCalmeagle9213
PARTICIPANT
March 20, 2025 at 9:56 amSection 27 Contract Act 1872
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SSilentguru9588
PARTICIPANT
March 20, 2025 at 5:41 amLayers of the sub,What if both the companies are us based but have an office in India.
Are non Competes still invalid?
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