Employees Can’t Be Forced to Stay Jobless Due to Non-Compete Clauses : Delhi High Court

The Delhi High Court held that employers cannot restrict ex-employees from joining new workplaces or force them to remain jobless.

The case involved software engineer Varun Tyagi, who joined the government body Digital India Corporation after resigning from Daffodil Software. Daffodil claimed Tyagi violated a non-compete clause barring him from working with its “business associates” for three years.

The Court struck down the clause and the interim injunction, calling such restraints post-employment void under Section 27 of the Indian Contract Act, 1872.

The court reiterated that no one can be compelled to either work for a former employer or remain idle.