Question

In: Economics

If a company asked you to agree to a noncompete provision in an employment contract as...

If a company asked you to agree to a noncompete provision in an employment contract as a condition to being hired, would you still sign the contract, and why or why not? 200 words pls

Solutions

Expert Solution

In my opinion, It depends on where my company is located at. But frankly speaking, I won't sign the contract. Indian context, this contract is prohibited in the first place as it poses a restraint to trade. But it may not be the case with every country. Under the noncompete provision, employee undertakes and gives his acceptance to the employer's condition that during the course of the employment or even after the employee leaves the job, he will not be employer's competitor in any form and nature of the employer's employment. This contracr prohibits an individual's right to start his own firm and doesn't justify why the individual shouldn't compete against the firm. Basically a restraint to trade as I mentioned. Despite having newer ideas in your field, you are forced to throw them away because of the contract which you've signed. Therefore lack of freedom to execute and restraint to trade has refrained me from signing the contract.

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