Is an employment bond or non-compete clause valid?
- The Codes and Central Rules do not set rules on employment bonds or non-compete clauses, so this library cannot answer it. Your contract and other laws decide it. Standing orders only say a worker cannot act against the establishment’s interest while employed order 21(1).
The model standing orders are for industrial establishments with three hundred or more workers (IR Code s. 28(1)), and your employer's certified standing orders may differ. Elsewhere, check your appointment letter, and see what applies at a smaller workplace.
The citations are to the service sector's model. These points read the same for manufacturing (order 20) and mining (order 21).
Last checked 1 Nov 2026 · written from the official text · not reviewed by a lawyer. This explains the law in general and does not decide your case.