Overall, non-competition prohibitions should be fair and fair to all parties. You need some information to be considered enforceable: Section 27 of the Indian Contract Act has a general block for any trade restriction agreement.  On this basis, it would appear that all non-competition clauses in India are null and void. However, the Indian Supreme Court has clarified that certain non-competition clauses may be in the interests of trade and commerce, and such clauses are not prohibited by Section 27 of the Contract Act and are therefore valid in India.  In particular, only clauses supported by a clear objective, considered beneficial for trade and trade, survive this test. For example, a co-founder of a start-up who has signed a non-compete clause may be, but if a junior software developer or call center employee signs a non-compete clause with the employer, this may not apply. An example of a non-compete agreement could be a company that is one of two or three such companies in a market that offers a particular product or service. The company may ask sellers to sign a non-compete agreement because they do not want these sellers to go to a direct competitor and try to take away their customer list. Already in Dyer`s case in 1414, the English common law decided not to enforce the prohibitions on non-competition, as they were by nature trade restrictions.  This prohibition remained unchanged until 1621, when a restriction limited to a given geographical site was established as an exception to the previously absolute rule. Nearly a hundred years later, the exception became the rule in Mitchel v Reynolds of 1711, which provided the modern framework for analyzing the possibility of a non-competition clause.  For a worker who is required to protect the employer`s confidentiality and business secrets, the employer and the worker may agree to the inclusion of non-compete clauses in the employment contract or a separate confidentiality agreement. In the event of termination or expiry of the employment contract, the employer pays monthly compensation to the worker during the agreed non-competition period.