The Hindu Business Line : Bond legally untenable, say experts

Some others in the industry felt that it would be impractical to track every employee for six months post resignation to see if he was breaking the clause. Further, companies do not have resources or historical data indicating employee career progress outside of the company.

Mr Karnik told Business Line that companies spent a lot of resources and money on tracking former employees and suing them. "That is why we have seen very few companies taking employees to court," he said. One may question if all the expenditure is worth the effort, but probably for every employee a company sues, 50 others may feel warned about breaking the bond, he said.

Besides, "What can one achieve by making the clause applicable to all employees," wondered another senior industry source. "Only senior employees interacting with clients on a day-to-day basis have critical information, not six-month old programmers in the company," he observed.

He said such clauses were common among US-based IT companies, but only for senior employees.

Sources also said global best practices, like a non-compete clause for senior employees, would benefit Indian companies only if they were implemented in keeping with a growing economy's free market practices.

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