ARTICLE · 19 AUGUST 2025

What Courts Are Cracking The Code On Post-Employment Clauses: In Light Of Varun Tyagi v. Daffodil Software Pvt Ltd.

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In today's fast-moving digital economy, retaining top talent and safeguarding proprietary value is both a strategic priority and a legal balancing act. Businesses are constantly navigating the fine...

IndiaEmployment and HR

Ashutosh Ranjan

In today's fast-moving digital economy, retaining top talent and safeguarding proprietary value is both a strategic priority and a legal balancing act. Businesses are constantly navigating the fine line between protecting proprietary information and empowering workforce mobility. A recent decision by the Delhi High Court in Varun Tyagi v. Daffodil Software Pvt Ltd, 2025 SCC OnLine Del 4589, reaffirmed that post-employment restrains, whether partial or complete, are unenforceable, unless they fall under the sole exception concerning the sale of goodwill.

A non-compete clause, is a negative covenant in a contract, imposed on the employee, pursuant which the employee is restricted from engaging in any competing business or being employed by a competitor.

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