Document background
The Active Non-Compete Agreement is a critical legal document used in Indian business contexts to protect an organization's legitimate business interests during the period of employment or business association. It becomes essential when employees or business associates have access to sensitive information, key client relationships, or specialized knowledge that could be detrimental to the organization if used in competition. Under Indian law, particularly considering Section 27 of the Indian Contract Act, 1872, non-compete restrictions are primarily enforceable during the active employment period, with post-employment restrictions facing stricter scrutiny. The agreement must carefully balance the organization's need to protect its interests with the constitutional right to livelihood under Article 19(1)(g) of the Indian Constitution. This document typically includes specific provisions about restricted activities, geographical limitations, duration, and consequences of breach, while ensuring reasonable and legally enforceable terms.
