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.
Business News›Prime›Prime Decoder›Non-competes don’t work, yet employers insist workers sign them. Why?
Workplace
Non-competes don’t work, yet employers insist workers sign them. Why?
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?
Refer & Earn
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