Non Solicitation Agreement for India

Non Solicitation Agreement Template for India

A Non-Solicitation Agreement under Indian law is a legally binding document that restricts one party from soliciting employees, clients, customers, or business relationships from another party. The agreement must comply with Indian Contract Act, 1872, and constitutional provisions, particularly Article 19(1)(g) regarding the right to practice any profession. The document typically specifies the duration, geographic scope, and specific prohibited activities, while ensuring restrictions are reasonable and protect legitimate business interests. It includes remedies for breach and must be carefully drafted to be enforceable in Indian courts.

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What is a Non Solicitation Agreement?

A Non-Solicitation Agreement is essential in protecting business relationships and maintaining workforce stability in the Indian business environment. This document is commonly used when entering into employment relationships, business partnerships, or during corporate transactions where there's a need to prevent one party from approaching or soliciting employees, clients, or business contacts of another party. The agreement must be drafted in compliance with Indian law, particularly considering the Indian Contract Act, 1872, and constitutional provisions. It typically includes specific terms about duration, geographic scope, and prohibited activities, while ensuring the restrictions are reasonable and enforceable. The document is particularly crucial in scenarios involving access to confidential information, client relationships, or specialized employee knowledge.

What sections should be included in a Non Solicitation Agreement?

1. Parties: Identifies the parties entering into the agreement, including full legal names and addresses

2. Background: Establishes the context and business relationship between the parties

3. Definitions: Defines key terms used throughout the agreement, including 'solicitation', 'confidential information', and 'restricted period'

4. Scope of Non-Solicitation: Details the specific activities prohibited, such as employee solicitation, customer solicitation, or both

5. Duration and Geographic Scope: Specifies the time period and geographical area where the restrictions apply

6. Legitimate Business Interests: Establishes the legitimate business interests being protected by the agreement

7. Exceptions and Permitted Activities: Specifies activities that are explicitly allowed despite the general restrictions

8. Acknowledgments: Contains parties' acknowledgments regarding the reasonableness of restrictions

9. Remedies: Outlines remedies available in case of breach, including injunctive relief and damages

10. Governing Law and Jurisdiction: Specifies Indian law as governing law and defines jurisdiction for dispute resolution

11. Severability: Ensures survival of remaining provisions if any provision is found invalid

12. Entire Agreement: Confirms the agreement represents the complete understanding between parties

What sections are optional to include in a Non Solicitation Agreement?

1. Confidentiality Obligations: Additional section when the non-solicitation is tied to confidential information protection

2. Non-Competition: Optional broader restrictions on competitive activities, used when appropriate and reasonable

3. Return of Property: Required when the relationship involves exchange of physical or digital assets

4. Survival: Specifies which provisions survive termination of the agreement

5. Assignment: Includes restrictions on assignment of rights and obligations

6. Notice Requirements: Details process for giving notices under the agreement

7. Alternative Dispute Resolution: Optional mediation or arbitration provisions

8. Force Majeure: Added when long-term obligations are involved

What schedules should be included in a Non Solicitation Agreement?

1. Schedule A - Restricted Customers: List of specific customers covered by the non-solicitation provisions

2. Schedule B - Restricted Employees: Categories or list of employees covered by the non-solicitation provisions

3. Schedule C - Geographic Territories: Detailed description of geographic areas where restrictions apply

4. Schedule D - Legitimate Business Interests: Detailed description of business interests being protected

5. Appendix 1 - Acknowledgment Form: Form for key employees or parties to acknowledge understanding of restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Relevant Industries

Information Technology

Professional Services

Financial Services

Healthcare

Manufacturing

Retail

Consulting

Research and Development

Pharmaceuticals

Telecommunications

Software Development

Education

E-commerce

Digital Marketing

Business Process Outsourcing

Relevant Teams

Legal

Human Resources

Executive Leadership

Business Development

Sales

Operations

Compliance

Risk Management

Corporate Development

Talent Acquisition

Finance

Strategy

Relevant Roles

CEO

HR Director

Legal Counsel

Business Development Manager

Sales Director

Managing Director

Department Head

Senior Manager

Operations Manager

Project Manager

Recruitment Manager

Chief Financial Officer

Chief Technology Officer

Partnership Manager

Compliance Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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