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Labour Law India · Just now · 132 views

Can my employer in Agra enforce a non-compete clause after I resign?

ME Asked by Meera Krishnan from India

Quick Answer

Non-compete clauses operating post-termination are void under Section 27 of the Indian Contract Act, 1872, as held by courts including the Allahabad High Court.

Detailed Legal Analysis

Non-compete clauses operating post-termination are void under Section 27 of the Indian Contract Act, 1872, as held by courts including the Allahabad High Court. The employer cannot prevent you from earning a livelihood in Agra after resignation.

However, confidentiality and non-solicitation clauses for clients may survive. Your employment conditions are otherwise regulated by Uttar Pradesh Rent Control Act 1972 governing the Uttar Pradesh Shops and Establishments Act.

Reasonable restrictions during employment are permissible but not after termination. You can challenge any threat of enforcement as an unreasonable restraint.

Last updated: October 3, 2026 AI-assisted answer

Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.

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