Indian startup employment agreement has 36 month non compete in travel industry. Can they actually stop me from starting my own company?
I work/worked as a Founding Engineer at a travel startup in India.
The company has been facing funding issues recently. From Feb 2026 to April 2026, I was verbally asked to take a 50% salary cut because they were low on funds. There was no formal email, document, or amendment for this salary cut. I also received increments earlier during employment, but those were never formally documented either.
The company:
- did not provide salary slips regularly
- handled many HR/payroll matters informally
- recently asked me to start looking for other opportunities because of financial issues
Now I want to start my own travel startup.
However, my employment agreement contains:
- a 36 month non compete clause
- restrictions on working in similar businesses
- restrictions even on family/friends/affiliates participating in competing businesses
- confidentiality and IP assignment clauses
- non solicitation clauses
The agreement also says that the founders/company can provide a written NOC permitting exceptions.
A few important points:
- I am still technically employed right now
- I have NOT copied any company code/data/customers/repos
- I do NOT intend to use confidential information
- I only want to start independently after leaving
- The startup space is travel tech
My questions:
- How enforceable are these 36 month non compete clauses in India after employment ends?
- Does the company’s informal handling of salary cuts/payroll weaken their position legally?
- Since I am still employed, can I legally register a company before resignation if it is not operational yet?
- How risky would it be to negotiate for an NOC/release?
- What kind of lawyer should I consult for this situation?
Not looking for ways to violate the agreement. Just trying to understand the realistic legal risks before making any move.