Agreement of employment against Contract Act will be nullity

Agreement of employment against Contract Act will be nullity
An employee is free to exercise his skill, training, and knowledge after leaving his job. A service covenant cannot be either extended beyond the termination of an employee under section 27 of the Indian Contract Act, 1872. No employee can be compelled to remain in employment at the cost of his betterment or progress.

The employee and the employer both enjoy certain rights in matters of employment, but they can never be used to the detriment of anyone. The employee cannot be forced to remain fastened with loyalty to the employer if that is not in consonance with the existing acts. No employee can be compelled or forced to remain in employment at the cost of his/her betterment or progress. If the employee is getting the chance of better employment, he/she cannot be prevented from leaving the job on the pretext that it would amount to a huge benefit to the rival organization at the cost of the company where the employee got the training and confidential information. The issue of ‘non-compete clause’ in employment offers has again raised a huge storm, particularly in the Information Technology industry sector because they are battling with an acute talent crunch after the pandemic. The attrition rate in some of the big companies like Infosys and TCS is as high as 27.7% and 17.4% respectively. Now the IT companies have put a clause in their offer letters that the employee will not...

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H.L. Kumar

is Advocate, Supreme Court of India, New Delhi. He has also been former Law Teacher in University of Delhi.

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