Unlock the Power of Digital Signature Licitness for Non-Compete Agreement in India

How to eSign a document: digital signature licitness for Non-Compete Agreement in India

[Music] hello everyone and welcome to the channel today we are going to focus on the enforceability of non-compete and notice period Clauses in India recently as need Grover the former co-founder and managing director of the Indian fintech company bharatpay shared his thoughts on non-compete and notice period Clauses in an interview ing to him these Clauses are invalid and unenforceable in the court however the truth is that the enforceability of these Clauses depends on several factors and is subject to certain limitations in India so today we delve deeper into this topic and discuss the extent to which non-compete and notice-speed clauses are enforceable or unenforceable in India so let's get started our non-compete clauses enforceable in India yes non-compete clauses are generally enforceable in India subject to certain conditions and limitations means the duration Geographic scope and nature of the activity being restricted should be reasonable and the Clause should not unduly restrict an employee's right to honor livelihood can a non-compi clause be overly broad or unduly restrictive no a non-compete Clause should not be overly broad or unduly restrictive of an employee's right to work and earn a livelihood the duration should be reasonable and should not exceed the duration of the employment or one year whichever is shorter now a notice period Clause is enforceable in India yes notice period Clauses are generally enforceable in India if they are reasonable in terms of the notice period required and the circumstances of the employee's departure the notice period should not be excessively long or burdensome for the employee can non-compete and notice period Clauses while agent in law or public policy yes non-compete and notice period Clauses may be unenforceable if they are found to be in violation of Indian law or public policy for an example if a non-compete Clause prohibits an employee from working in the same industry as the employer it may be held to be in violation of section 27 of the Indian contract Act 1872. now are there any protections available for employees under the Indian labor laws yes Indian labor laws provides certain protections to employees such as the right to terminate their employment with reasonable notice and the right to work in a profession of their choice therefore any non-complete or notice period loss that seeks to limit these rights may be held to be unenforceable now let's talk about what are those factors which determine the enforceability of non-compete and notice period Clauses in India then for stability of non-compete and notice period Clauses in India will depend on various factors including the specific terms of the agreement and circumstances of the case the duration Geographic scope nature of the activity being restricted should be reasonable and the Clause should not unduly restrict an employee's right to on a livelihood in conclusion while non-compete and notice period Clauses are generally enforceable in India their enforce ability is subject to certain conditions and limitations the Indian quotes have held that these Clauses should not unduly restrict on employees right to earn a livelihood and must be reasonable in terms of duration Geographic scope and the nature of the activity being restricted it is crucial for employers and employees to understand these limitations and conditions while drafting and signing employment agreements thank you [Music] foreign