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Why we picked it Founders conflate two very different things: non-competes while employed (usually enforceable) versus after you quit (usually void under Section 27 of the Contract Act). This piece draws that line cleanly with recent Indian case law (Navigators Logistics, Neosky India 2025), so you know what your employer can actually stop you from doing once you leave to go full-time.
Section 27 and Post-Termination Non-Compete Clauses: How Far Can Employers Go?
From Anirudh Associates by Anirudh Associates 10 min read
- Section 27 makes most post-resignation non-competes void, so a clause barring you from a competing startup after you quit generally can't be enforced.
- Restraints that operate while you are still employed are a different matter and are generally upheld, which is exactly the risk window when you moonlight.
- What does survive termination is well-drafted confidentiality and narrow non-solicitation, so protect yourself by not touching your employer's data or clients.