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Can’t enforce IT freshers’ ‘non-competes’: Experts, HR News, ETHRWorld


hr.economictimes.indiatimes.com | www.ETHRWorld.com

<p>Tech employers are using their bargaining power to impose such restraints at junior levels and in many cases, legal experts said it doesn’t go beyond serving a legal notice</p>
Tech employers are using their bargaining power to impose such restraints at junior levels and in many cases, legal experts said it doesn’t go beyond serving a legal notice

Bengaluru: A non-compete clause woven into Indian IT companies’ contracts for freshers can at best act as a deterrent, legal experts said, as campus hires are being coerced into signing agreements that are unenforceable in India.

Tech employers are using their bargaining power to impose such restraints at junior levels and in many cases, legal experts said it doesn’t go beyond serving a legal notice.

TCS, Infosys, Wipro and HCLTech and Tech Mahindra have non-compete clauses ranging from 6-12 months baked into their contracts that are not legally enforceable. Some firms disallow freshers to join competitors and customers within a stipulated time.

Industry body Nasscom said the Indian IT sector is expected to add 2.5-2.7 lakh freshers in the 2023-24 financial year compared to 3.7-3.8 lakh in the previous fiscal. The subdued business environment has forced clients to pull back discretionary spending and pause non-critical projects. This has reduced fresher intake drastically.

Last year, TOI had reported that Infosys introduced a non-compete clause that forbade employees from working on the same customer’s projects across five named competitors and their subsidiaries for six months after leaving the firm. It named TCS, IBM, Accenture, Wipro, and…


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