solicitation
Legal penalty for violating a non-solicitation clause in employment agreement
What's the legal penalty for violating a non-solicitation clause in employment agreement in India?
By  Mehar B  |  11 May 2016  |  Upvotes: 0  | 

1 Answer(s)

Soumya
Advocate

The answer to the enforceability of non-solicitation clause in India is very subjective. However, prima facie, such clause which extends after the termination of an employee is not enforceable in India. It infringes Article 19 of the Indian Constituion which protects the right of Indian Citizen to practice free trade and occupation.It also hits section 27 of the Indian Contract Act,1872 wherein an agreement in restraint of trade is void. Further violation of non-solicitation clause during the term of the employment violates breach of contract and attracts damages under civil litigation and criminal breach of trust under criminal litigation.

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