Company signed non-competing agreement but got an offer from competitor

Community Forums Legal Advice India Company signed non-competing agreement but got an offer from competitor

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    • #31762 Reply
      Pritistar440
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        Pritistar440
        PARTICIPANT
        March 20, 2025 at 2:10 am
        Hi 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 companyโ€™s 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 itโ€™s 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.

      • #31769 Reply
        Happyshark11
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          Happyshark11
          PARTICIPANT
          March 20, 2025 at 2:15 am
          You are free to join any company of your choice, as non-compete clauses are generally unenforceable in courts.

        • #31768 Reply
          Megamaster2414
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            Megamaster2414
            PARTICIPANT
            March 20, 2025 at 2:16 am
            Unless 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.

            • #31772 Reply
              Pritistar440
              Participant
                P
                Pritistar440
                OP
                March 20, 2025 at 9:22 am
                Thanks 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 thatโ€™s still in my phone.

                Although I can accuse or backfire them of stealing competitor data (same company i am joining) through an amazon representative.

                • #31774 Reply
                  Megamaster2414
                  Participant
                    M
                    Megamaster2414
                    PARTICIPANT
                    March 20, 2025 at 10:26 am
                    Unless 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.

              • #31767 Reply
                Cleverbhuvan1124
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                  Cleverbhuvan1124
                  PARTICIPANT
                  March 20, 2025 at 2:19 am
                  Is 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.

                  • #31771 Reply
                    Pritistar440
                    Participant
                      P
                      Pritistar440
                      OP
                      March 20, 2025 at 9:21 am
                      Theyโ€™re both indian start ups, the ex employee is in MP and the new one is in MH

                  • #31766 Reply
                    Sarangdude644
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                      Sarangdude644
                      PARTICIPANT
                      March 20, 2025 at 2:22 am
                      Firstly, 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.

                    • #31765 Reply
                      Calmeagle9213
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                        Calmeagle9213
                        PARTICIPANT
                        March 20, 2025 at 3:38 am
                        Non-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.

                      • #31764 Reply
                        Wisekavya5258
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                          Wisekavya5258
                          PARTICIPANT
                          March 20, 2025 at 4:08 am
                          Not enforceable in India.

                          • #31770 Reply
                            Vikasknight404
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                              V
                              Vikasknight404
                              PARTICIPANT
                              March 20, 2025 at 9:05 am
                              Any law which states this or any references of past cases?

                              • #31773 Reply
                                Calmeagle9213
                                Participant
                                  C
                                  Calmeagle9213
                                  PARTICIPANT
                                  March 20, 2025 at 9:56 am
                                  Section 27 Contract Act 1872

                            • #31763 Reply
                              Silentguru9588
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                                Silentguru9588
                                PARTICIPANT
                                March 20, 2025 at 5:41 am
                                Layers 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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