I have already stated, and I will repeat :
Sec 27 of Indian Contract Act specifically disallows any contract in restraint of trade or profession except in case of sale of goodwill of a business. So the clause is not enforceable
Second, no such clause can be inserted after the person has left. If it was introduced while he was working, it would any way need his consent in writing. But even then, the clause is unenforceable.
The fact that the company is new, old or startup, does not matter in the above context.
He needs to engage a lawyer who will send out a legal notice and if necessary, file a case against the company for recovery of his money. I hope he understands that such a course is generally expensive. One additional point, his PF, Gratuity, etc is not subject to any deduction for this or any other clause.
From India, Mumbai
2388Sec 27 of Indian Contract Act specifically disallows any contract in restraint of trade or profession except in case of sale of goodwill of a business. So the clause is not enforceable
Second, no such clause can be inserted after the person has left. If it was introduced while he was working, it would any way need his consent in writing. But even then, the clause is unenforceable.
The fact that the company is new, old or startup, does not matter in the above context.
He needs to engage a lawyer who will send out a legal notice and if necessary, file a case against the company for recovery of his money. I hope he understands that such a course is generally expensive. One additional point, his PF, Gratuity, etc is not subject to any deduction for this or any other clause.
From India, Mumbai
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