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 Non-compete clauses: Unenforceable under law, but companies love them
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Non-compete clauses are still included in employment contracts in India, despite being unenforceable under the law. Companies use them as a soft deterrent, especially for senior executives. Employees comply rather than face litigation costs and being sued by their previous employer. The US Federal Trade Commission recently banned non-compete clauses for US workers. Indian employees tend to be compliant with non-compete obligations due to the severe consequences of breach. Some employees may not know their rights, leading to the inclusion of non-compete clauses in contracts.

#NoncompeteClauses #EmploymentContracts #IndianLaw #UsFederalTradeCommission

https://m.economictimes.com/news/company/corporate-trends/non-compete-clauses-unenforceable-under-law-but-companies-love-them/articleshow/109633571.cms