Where an employee enters into an agreement with his employer not to engage in similar work after the termination of this service, the agreement is
Enforceable
Incorrect AnswerVoidable
Incorrect AnswerExplanation:
- When an employee agrees with the employer not to take up similar work after leaving the job, this is called a "restraint of trade" agreement.
- According to Section 27 of the Indian Contract Act, any agreement that restricts someone from practicing a lawful profession, trade, or business is generally void.
- Exceptions exist for the sale of goodwill, where reasonable restrictions are allowed, but not for ordinary employment contracts.
- Hence, such non-compete agreements in standard employment contracts are not enforceable by law and are considered void.
Correct Answer: Option 2 - Void
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By: Abhipedia