Importance Of Restrictive Employment
ENFORCEABILITY OF RESTRICTIVE COVENANTS IN EMPLOYMENT CONTRACTS IN INDIA
Tanvi Giri
INTRODUCTION
The relationship between an employer and employee has always been in a state of evolution. This evolution has led to changes in their relationship, resulting into emergence of new issue of disputes between the two. In India, no specific legislation exists to balance certain interests of employer and employee. The only recourses available are Judicial Interpretations and Common Law. However, there is profound inconsistency within the judiciary itself in developing appropriate standards of review for addressing these employment related issues like confidentiality and non-solicitation.
This paper is an attempt to elucidate one major issue resulting in disputes arising in an employment relationship. This issue is the enforceability of restrictive covenants in an employment contract in India.
With the opening up of Indian economy and increasing competition, employment opportunities have grown tremendously. The employers are making all possible efforts to tie their employees to continue to serve in the organization and in case an employee leaves, he is still bound by certain covenants. The question that arises is whether such a method to restrict employees is acceptable and enforceable under the Indian Law . With regard to such restrictive covenants, there is no legislative provision in India but these are contentious issues because such covenants apparently conflict certain
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