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Is non-compete clause in employment contract legally binding?

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Posted by Legal Seeker 7/17/2026, 7:15:52 PM
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I resigned from a software company. My contract had a non-compete clause stating I cannot work for any competitor in Pakistan for 2 years. Is this clause legally enforceable?

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Admin 7/17/2026, 7:15:52 PM

Generally, no. Under Section 27 of the Contract Act 1872, any agreement that restrains anyone from exercising a lawful profession, trade, or business of any kind is void. Pakistani courts strongly protect the right to livelihood (Article 18 of the Constitution) and do not enforce post-employment non-compete restrictions unless proprietary trade secrets are leaked.