Employee Non-Compete & Confidentiality Agreement Format & Template
Employment & HR · ₹50 · ~7 min · Sign in free, fill the guided form with a live preview, pay to download.
What is an Employee Non-Compete & Confidentiality Agreement?
This agreement protects an employer’s confidential information and restricts an employee from competing with the business. It is usually signed alongside the employment agreement.
In India the two halves are treated very differently. Confidentiality obligations — during and after employment — are generally enforceable. Restrictions on competing while the person is still employed are also generally upheld. But a non-compete that stops someone working for a competitor or starting a business after they leave is generally void.
When to use it
- An employee will handle trade secrets, client lists, pricing or source code.
- You want non-solicitation of clients and staff alongside confidentiality.
- A senior hire is joining from a competitor and both sides want the boundaries recorded.
What you'll need
Keep these details ready — the form asks for them in this order.
Company
Company name
Employee
Employee's full name · Designation
Restrictions
Non-compete period after leaving · Geographic scope of restriction
Execution
Effective date · City / jurisdiction · State
How it works
Enter company and employee
Company name, employee’s name and designation.
Set the restrictions
Period and geographic scope — keeping in mind post-employment non-competes are generally unenforceable.
Preview, pay and download
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How to make it legally valid
- Under Section 27 of the Indian Contract Act, 1872, an agreement that restrains someone from carrying on a lawful profession, trade or business is void. Restrictions while the engagement lasts, and confidentiality obligations, are generally enforceable; a non-compete that applies after it ends generally is not.
- Signed by the employee and an authorised signatory of the employer.
- A precise definition of confidential information.
- Stamp duty where your state charges it on agreements.
Common mistakes to avoid
- Relying on a post-employment non-compete to stop an employee joining a rival.
- Defining confidential information so broadly that it covers general skills and knowledge.
- No non-solicitation clause, which is often more useful in practice.
Ready to prepare your Employee Non-Compete & Confidentiality Agreement?
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This is a self-help template for common situations — it is not legal advice and LawMitran is not a law firm. Need help with your employee non-compete & confidentiality agreement? Find a employment law lawyer · Legal documents FAQs.