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How to eSign a document: electronic signature legitimacy for Non-Solicitation Agreement in India

foreign [Music] into an employment agreement today okay you are going to be my I'm I have a company XYZ company you applied for a job now I have taken your interview and I am going to fire you in the employment agreement one of the standard yes I'll explain later don't worry one of the standard Clauses that we will be using is the non-compet and the non-solicit what is these are more or less on similar lines the only difference lies is that non-complete Clause will prohibit you as an employee suppose I am in couples what thing I have I'm in the business of sales take care I am an XYZ company I am in the business of sale fine there are 20 other companies in my same area field let it's just a hypothetical number I'm using as an example okay non-compact Clause will basically prohibit you to go into direct competition with a competitor like basically directly compete with me when it comes to other like competitors in the market like basically people who are in the same similar business ticket and known solicit is you will not it is a Prohibition both are basically negative covenants or limit both acts as basically limitations on you solicitation will not be allowed solicitation will not be allowed means at the end when you are leaving my company support after six months you leave for a very specific period you will not be able to add solicit my employees suppose you had co-workers a lot of 10 people were your co-workers you will not be able to solicit my employees to join and a competition a similarly complex business now non-compet non-solicit Clauses there is a very interesting gray area regarding these two Clauses in India okay to research upon it some cases it has been held that non-complete and non-solicit clauses are basically in Restraint of trade that is it it is hit by section 27 of the Indian contractor why it has been held is because I'll tell you at the end of the day these Clauses can be enforced only when both the parties are very clear and they are agreed to them so you have to agree its standard employment contracts have all have this and in practice it is utilized but at the end of the day you when you are signing the agreement you have to agree that okay and both of these are basically survived I used a survival closet so for example it survives the termination of the update so today if I terminate the agreement the non-compet and the non-solicit Clause may have effect up to one year or two years whatever we decide among ourselves section 27 Hashima section 27 of the Indian contractor you can go home and read it's a kind of a homework I'm giving you read the interplay between non-complete non-solicit and section 27 read the case law ticket so basically first of all for the enforceability of this Clauses both parties have to be very clear on the agreement and second point that you have to remember is generally these Clauses survive the termination of the agreement so today if I told me that generally obviously I don't want to see the primary reason is that when you're joining a company or anything any transaction is happening to new and me there will be certain confidential information that we will be sharing right so the purpose of non-compet and non-solicit Clause is very simple not to use my Trade Secrets no confidential information and go and tell it or go and disclose it directly to a competitor once you leave or once the agreement is terminated so it takes like we just keep it basically in check forever forever I cannot tell you that okay keep the information confidential don't go into a similarly Place business don't solicit my employees I cannot put this check on you forever but for a specified period of time this Clauses act and generally these are very much in practice and both parties generally consent to there is no literally there is no dispute when it comes to internet but read how and in what circumstances section 27 will be attracted when it comes to non-complete and non-solicit problems it's a very interesting read [Music] thank you [Music]