Are non-compete clauses valid in India?

Under Section 27 of the Indian Contract Act, 1872, any agreement that restrains anyone from exercising a lawful profession, trade, or business is void. This means post-employment non-competes are generally unenforceable in India.

What is the standard notice period in India?

Typically, notice periods range from 30 to 90 days. For employees on probation, it's often shorter (15-30 days).

Can an employer reduce my salary during the contract term?

Generally, no. A unilateral reduction in salary without a corresponding amendment signed by the employee can be challenged as a breach of contract.

Employment

Employment Contract Checklist: What to Review Before Accepting a Job

January 24, 2026 • 6 min read

Employment Contract Checklist India: What to Review Before Signing

You got the job offer. Exciting! But before you sign, take a careful look at the employment contract. What you agree to now will affect your career for years—and potentially limit your options when you leave.

The Complete Employment Contract Checklist

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Job Title & Responsibilities

Is the role clearly defined? Vague descriptions can lead to scope creep in duties.

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Compensation & Benefits

Base salary, bonuses, stock options, health insurance, PF contributions. Get everything in writing.

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Start Date & Probation Period

How long is probation? What are the terms during probation? (Often: shorter notice, easier termination)

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Working Hours & Location

Is remote work allowed? What about overtime expectations?

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Notice Period

How much notice must you give to resign? 30-90 days is common in India.

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Non-Compete Clause

⚠️ Big one. Can you work for competitors after leaving? For how long? In which geographies?

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Non-Solicitation Clause

Can you hire former colleagues or approach company clients after leaving?

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Intellectual Property Assignment

Does the company own everything you create? Even side projects? Outside work hours?

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Confidentiality Terms

What information can't you share? How long does this last?

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Termination Conditions

What constitutes termination for cause? What severance do you get?

Legal Deep Dive: Section 27 & Non-Competes

Many Indian employers include aggressive non-compete clauses (e.g., "cannot work for a competitor for 2 years"). However, **Section 27 of the Indian Contract Act** strictly prohibits restraints on trade. While these clauses are often included to deter employees, they are rarely enforceable in court post-employment.

Red Flags to Watch For

❌ Non-compete lasting more than 1 year
❌ IP assignment for work done outside office hours
❌ "Garden leave" that locks you out without pay
❌ Unilateral salary reduction rights
❌ Broad definitions of "competitor"

Don't Sign Blindly.

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