A non-compete agreement (NCA), also known as a restrictive covenant, is a legal contract between an employer and an employee that prohibits the employee from working for a competitor or starting their own business in competition with the employer after the employment relationship ends
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The NCA typically includes the following elements:
It's important to note that in India, the NCA's are not registered with any government body and it is a private contract between parties. Additionally, the NCA's are subject to the Indian Contract act and need to be reasonable in terms of their duration and geographical scope and must not be overly restrictive.For an NCA Agreement to be valid in India, it must be in writing, and it must be signed by both the employer and the employee. Additionally, the NCA Agreement should be reasonable in terms of its duration and geographical scope, and should not be overly restrictive.
It's worth noting that, in India, the courts have the power to modify the terms of the NCA Agreement if it is found to be too restrictive and impose an undue hardship on the employee. Additionally, the court may also refuse to enforce the NCA Agreement if it is found to be against the public interest or if the employer has not taken reasonable steps to protect their confidential information.
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