HR Glossary

What is Non-Compete Clause?

A contractual restriction that attempts to prevent an employee from joining a competitor after leaving the employer, which is largely unenforceable in India under Section 27 of the Indian Contract Act, 1872, though restrictions during employment are valid.

Why it matters in hiring

Non-Compete Clause comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with N

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.

Keep your hiring moving

Hire on proof

Test every applicant. Interview only the proven.

Skills tests, AI screening and video interviews behind one candidate link.

springhire
Candidate assessed with springhireCandidate assessed with springhireCandidate assessed with springhire