A non-solicitation clause is one where an employer can, through contract, prohibit the employee from contacting or professionally engaging with the employer company’s clients/contractors/contacts etc., for a defined period of time, after the termination of the employment.
While a non-solicitation clause is seen in the employer/employee scenario, it can also be used in other contractual relationships, say between business partners or vendor-agency and so on.
The validity of a non-solicitation clause is seen from the same lens as a non-compete clause, viz. it has a restricted application in India (& may be open to challenge), because of the restraint of trade provision under section 27 of the Indian Contract Act) & that it cannot restrain a person from carrying on any trade/business/profession etc.
However, this is far from ideal from an employer’s perspective. Every employer would want to protect their trade secrets/client lists etc. from being used by any former employee.
Much like the commentary on non-compete clauses, there are divergent views in Indian jurisprudence about the validity of non-solicitation clauses. However, what can be said for sure is this - any clause that is too onerous, or too restrictive will definitely be void.
Therefore, what one could consider doing as an employer, is to certainly have a non-solicitation clause in their agreements, but ensure that it follows the rules of reasonableness i.e. that the restrictions contained therein be limited by time, geography/specific industries or companies etc. Anything that is wide-ranging has a greater chance of being challenged and struck down as invalid.
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*Disclaimer: The content of this video is legal information and NOT legal advice. Kindly consult a lawyer, with the specifics of your issue to get appropriate legal advice.*
