Non-Compete Agreement (Drafting)

A non-compete agreement is a contract in which an employee promises not to enter into any kind of competition with an employer after the employment period is over. These agreements also prohibit the employee from revealing proprietary information or secrets to any other parties during or after employment.Most contracts specify a certain length of time during which the employee is prohibited from working with any competitor after he or she ends employment with the employer. Employers may require employees to sign non-compete agreements to maintain their position in the market. Those required to sign these agreements may include employees, contractors, and consultants. Non-compete agreements are signed when the relationship between employer and employee commences. They give the employer control over certain actions of the former employee, even after that relationship ends.

These agreements have specific clauses stating that the employee will not work for a competitor after his or her employment is over, regardless of whether the employee is terminated or resigns. Employees are also prevented from working for a competitor. Some of the terms of the contract may include the length of time the employee is bound to the non-compete agreement, the geographic location, and/or market. These agreements may also be called a "covenant not to compete" or a "restrictive covenant." Non-compete agreements are commonly used in the media and related fields. Non-competes are also common in the information technology (IT) sector. In IT sector employees are often charged with proprietary information that may be deemed valuable to a company. Other places where these agreements are found include the financial industry, the corporate world, and manufacturing.


Features of Non-Compete Agreement:


1.Trade secrets: Non-compete agreements can prevent employees from taking sensitive information to a competitor.


2.Turnover: Companies with non-compete agreements may be a good fit with workers who have a lesser desire to change jobs.


3.Costly training: The chance is reduced of an employee taking the skills learned from costly training and taking them to another company.


4.Bargaining power: Majority of the workers are asked to sign a non-compete agreement after beginning work, when they have little leverage and have closed the door to other opportunities.


5.Expertise: Non-competes can have an adverse effect on the workforce by preventing top talent from using their skills and experience, essentially forcing them out of the field.

Documents Required

Passport Photo

Passport photo of all parties.

PAN Card

PAN card of all parties.

Aadhar Card

Aadhar card of all parties.

Utility Bill

Utility bill of Electricity or Telephone.

Terms and Conditions

Terms and Conditions between the parties.

Address Proof

Valid Address Proof of all the parties.


Valid Driving Licence of all the parties.

Other Documents

Other documents will be intimated through e-mail.


A non-compete contract can be declared void in certain circumstances. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.

The only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued.

The employer may sue you and go to court seeking an "injunction" or restraining order to prevent you from violating your agreement. Violation of a non-compete agreement can cause an employer immediate harm, the court will often use expedited procedures in these cases.

In determining whether to enforce a non-compete agreement or provision, the court balances the employer's interest in protection from unfair competition against the employee's right to earn a livelihood. If the employer's interest outweighs the employees, the non-compete agreement is valid and enforceable.

To be enforceable in most countries, the agreement must be reasonable in duration. The amount of time considered to be "reasonable" depends on the state. Generally, non-compete agreements that last longer than two or three years might not be enforced by a court.

When you sign a non-compete agreement, the enforceability of the document does not depend on reason of leaving an employer. If you voluntarily leave or if you are fired, you still cannot go and work for a competitor, as a general rule.