Employment issues in India is divided in two areas i.e. one faced by employer and the other faced by the employee. The common problem faced by the employers is their employees joining competing organizations which is regulated by Indian Contract Act, 1872. Under the respective Act, non-competition restrictions which are restraint in trade are unenforceable post termination regardless of the agreements. The concept of reasonable restriction is not recognized because of which even reasonable non-competition agreements is not enforceable regardless of agreements being provided. Other problems which are usually faced by employer are recovery of training costs and clauses related to garden leave post termination employment. Labour laws like Factories Act, 1948 and other established laws of different states lays down working hours, number of overtime hours, etc. Therefore, it acts as a challenge for the employers in cases where they have fixed hours to achieve greater efficiency while managing their workforce.
The employers send legal notices to employees although the clauses of non-competition are unenforceable post termination of employment. Hence, the employees receive legal notices from their previous employers in which the employees spend their resources in defending such legal battles. In order to protect themselves the employees must be careful and ensure that they hold no confidential information of their previous employers. The employees’ right need to be protected such as fair compensation, right to privacy, freedom of discrimination, etc. It is the employers’ duty to make their employees aware of their right to compensation.