IT Freshers Beware: Non-Compete Clauses Woven into Contracts are Unenforceable in India, Experts Say

IT Freshers Beware: Non-Compete Clauses Woven into Contracts are Unenforceable in India, Experts Say

Indian IT companies like TCS, Infosys, Wipro, HCLTech, and Tech Mahindra have been including non-compete clauses, ranging from six to twelve months, in the contracts of campus hires. However, legal experts have stated that these clauses are not enforceable in India and can at best act as a deterrent. According to trade association Nasscom, the number of new hires in the Indian IT sector is expected to decrease. Infosys and Wipro have implemented non-compete clauses to prevent employees from working on the same customer’s projects across specified competitors. While these clauses may not be enforceable post-employment, employers are exploring novel approaches to incentivize compliance. Experts suggest that fostering trust and creating an open culture are more effective ways to retain employees.

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TIS Staff

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