What is a Non-Solicitation?

A non-solicitation agreement restricts an individual or company from actively recruiting the employees or poaching the clients of the other party after the relationship ends.

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Deep Dive: The Non-Solicitation

Companies invest heavily in their teams and client lists. A non-solicitation clause ensures that a departing executive, a former vendor, or a business partner doesn't walk away and immediately strip the company of its most valuable assets.

Hidden Risks for Founders

It restricts your future business growth. If defined too broadly, you might not be able to hire anyone from your former employer's city or market to your former clients even if they approach YOU. Always ensure the clause specifically outlaws *active poaching*, not passive hiring via general job listings.

Example in a Contract

                            
                            For a period of 12 months following termination, the Employee shall not directly or indirectly solicit, entice, or attempt to persuade any employee or client of the Company to terminate their employment or relationship with the Company.
                        

Legal Enforceability in India

Partially. Under Section 27 of the Indian Contract Act, agreements in restraint of trade are void. However, 'reasonable' non-solicitation of *employees* is often upheld, whereas preventing a *client* from voluntarily moving to a new service provider is highly difficult to enforce in Indian courts.

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