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Non-competes don’t work, yet employers insist workers sign them. Why?
![Non-competes don’t work, yet employers insist workers sign them. Why?](https://img.etimg.com/thumb/msid-109697255,width-1015,height-761,imgsize-33790,resizemode-8/prime/prime-decoder/non-competes-dont-work-yet-employers-insist-workers-sign-them-why.jpg)
![Non-competes don’t work, yet employers insist workers sign them. Why?](https://img.etimg.com/thumb/msid-109697255,width-1015,height-761,imgsize-33790,resizemode-8/prime/prime-decoder/non-competes-dont-work-yet-employers-insist-workers-sign-them-why.jpg)
Synopsis
Often, Indian employers insert clauses to restrict an employee’s ability to join a competitor. This is legally unenforceable. Why then is this in vogue?
Last week, the US Federal Trade Commission (FTC) banned most non-compete clauses. These were clauses that essentially restricted a worker’s ability to join their employer’s competitor for a certain period after quitting. FTC’s argument was that such clauses limited mobility of workers and suppressed wages. In India, where non-competes have for long been unenforceable by law, companies continue to include them in employment contracts. Here’s why.
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