Employment Law

Post-employment non-compete clauses are generally not enforceable in India under Section 27 of the Indian Contract Act 1872, which voids agreements in restraint of trade. Courts have consistently held that a clause preventing an employee from working for a competitor after leaving employment is an unenforceable restraint on trade. However, reasonable garden leave clauses (where the employee is paid for the notice period but not required to work) and narrowly drawn non-solicitation of customers/employees clauses have a stronger chance of enforcement, depending on the specific facts and the courts' analysis of reasonableness.

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013 (POSH Act) applies to every employer with 10 or more employees. "Employer" includes any private enterprise, organisation, or establishment. The obligation to constitute an Internal Committee (IC), formulate a POSH policy, and conduct annual awareness training applies from the moment the company has 10 or more employees. Employers in every state and district must also be aware of the Local Complaints Committee (LCC) established by the District Officer for employers with fewer than 10 employees.

The notice period requirement depends on the employment contract, applicable Standing Orders, and labour legislation. Most employment contracts specify 1-3 months' notice for senior employees and 30-60 days for others. Standing Orders applicable under the Industrial Employment (Standing Orders) Act may prescribe minimum notice periods for workmen. The Industrial Disputes Act requires prior government permission for retrenchment of workmen in establishments with 100 or more workers. For non-workmen (managerial and professional employees), notice period is primarily governed by the employment contract.