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Standard Non Compete Agreement

Standard Non Compete Agreement Template for India

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Key Requirements PROMPT example:

Standard Non Compete Agreement

"I need a Standard Non-Compete Agreement for a senior software engineer joining our IT company in Bangalore in March 2025, with specific focus on protecting our client relationships and proprietary technology during employment."

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Document background
The Standard Non-Compete Agreement serves as a crucial legal instrument for protecting business interests in India, particularly in scenarios involving access to sensitive information, trade secrets, or valuable client relationships. While Indian courts generally void post-employment non-compete restrictions under Section 27 of the Indian Contract Act, they recognize the validity of reasonable restrictions during employment. This document is commonly used when onboarding new employees, engaging consultants, or establishing business partnerships where protection of proprietary information and business interests is paramount. It typically includes detailed provisions on prohibited competitive activities, geographical limitations, confidentiality obligations, and remedies for breach, all structured to comply with Indian legal requirements and judicial precedents. The agreement is particularly relevant in knowledge-intensive industries and for roles involving access to sensitive business information or key client relationships.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and any relevant corporate details

2. Background: Context of the agreement, relationship between parties, and purpose of the non-compete provisions

3. Definitions: Clear definitions of key terms including 'Confidential Information', 'Competing Business', 'Territory', 'Restricted Period', and other relevant terms

4. Scope of Non-Compete: Detailed description of prohibited competitive activities, specific industry sectors, and geographical limitations

5. Duration of Restrictions: Timeframe for the non-compete obligations, specifically during employment period

6. Non-Solicitation Obligations: Restrictions on soliciting employees, customers, or suppliers

7. Confidentiality Obligations: Protection of confidential information, trade secrets, and intellectual property

8. Acknowledgments: Party's acknowledgment of reasonableness of restrictions and receipt of consideration

9. Remedies: Available remedies in case of breach, including injunctive relief and damages

10. Severability: Provision for survival of remaining clauses if any clause is found unenforceable

11. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

12. Execution: Signature blocks and execution formalities

Optional Sections

1. Garden Leave: Optional clause for paid leave during notice period to prevent immediate competition - use when dealing with senior executives

2. Training Cost Recovery: Clause regarding recovery of specialized training costs - include when substantial training investment is involved

3. Assignment Rights: Rights to assign the agreement to another entity - include in cases of potential corporate restructuring

4. Survival Clause: Specification of which provisions survive termination - include for complex agreements with multiple obligations

5. Independent Contractor Provision: Clarification of relationship status - include when agreement is with consultants or contractors

6. Dispute Resolution: Detailed arbitration or mediation procedures - include for high-value or complex relationships

Suggested Schedules

1. Schedule A - Restricted Territory: Detailed list of geographical areas where restrictions apply

2. Schedule B - Competing Businesses: Specific list of competitors or competing business activities

3. Schedule C - Consideration Details: Details of any specific consideration provided for the non-compete obligations

4. Appendix 1 - Confidential Information: Detailed categorization of information considered confidential

5. Appendix 2 - Company Clients/Customers: List of protected clients and customers covered by non-solicitation provisions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Affiliated Entity
Business Relationship
Company
Competing Business
Competitor
Confidential Information
Customer
Effective Date
Employee
Employer
Intellectual Property Rights
Material Interest
Non-Compete Period
Parties
Prohibited Activity
Protected Business
Restricted Activity
Restricted Period
Restricted Territory
Services
Solicitation
Trade Secrets
Termination Date
Territory
Proprietary Information
Business Opportunities
Client
Prospective Client
Key Employee
Group Company
Business Partner
Vendor
Supplier
Professional Services
Consideration
Clauses
Interpretations and Definitions
Duration and Term
Non-Competition
Non-Solicitation
Confidentiality
Intellectual Property Protection
Consideration
Acknowledgments and Representations
Notice Requirements
Assignment and Transfer
Remedies and Injunctive Relief
Severability
Waiver
Amendment and Modification
Governing Law
Jurisdiction
Dispute Resolution
Force Majeure
Entire Agreement
Survival
Termination
Independent Contractor
Data Protection
Garden Leave
Return of Property
Training Cost Recovery
Third Party Rights
Compliance with Laws
Execution and Counterparts
Relevant Industries

Information Technology

Pharmaceuticals

Financial Services

Management Consulting

Professional Services

Healthcare

Biotechnology

Manufacturing

Research and Development

E-commerce

Telecommunications

Business Process Outsourcing

Software Development

Investment Banking

Digital Marketing

Relevant Teams

Human Resources

Legal

Executive Leadership

Sales

Research and Development

Information Technology

Product Development

Business Development

Finance

Operations

Client Services

Marketing

Strategy

Engineering

Data Analytics

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Software Engineer

Product Manager

Sales Director

Business Development Manager

Research Scientist

Financial Analyst

Management Consultant

Technical Architect

Project Manager

Account Manager

Senior Vice President

Department Head

Regional Manager

Chief Financial Officer

Marketing Director

Head of Operations

Data Scientist

Principal Engineer

Industries
Indian Contract Act, 1872 - Section 27: Fundamental law declaring agreements in restraint of trade void, except for sale of goodwill. This is the primary legislation affecting non-compete agreements in India.
Constitution of India - Article 19(1)(g): Guarantees fundamental right to practice any profession, occupation, trade, or business, which impacts the enforceability of non-compete restrictions.
Indian Partnership Act, 1932 - Section 11(2): Relevant for partnership-related non-compete provisions, particularly regarding restrictions on partners during the partnership.
Specific Relief Act, 1963: Relevant for enforcement mechanisms and remedies available for breach of non-compete agreements.
Competition Act, 2002: Must be considered to ensure non-compete provisions don't violate anti-competitive practices regulations.
Gujarat Stamp Act, 1958 (and similar state stamp acts): Governs stamp duty requirements for non-compete agreements to make them admissible as evidence in court.
Vishakha Guidelines and Prevention of Sexual Harassment Act, 2013: Relevant when drafting confidentiality provisions within non-compete agreements that might interact with whistleblower rights.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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