The sale of goodwill, and only that. An employee's non-compete is not it, however short the period.
Source: Indian Contract Act, 1872, s.27 and Exception 1Employee NDA Template for Indian Employers
An employee NDA template that holds up in India: the confidentiality clauses that work, the non-compete that does not, who owns the work, and what a breach actually costs.
- Standalone NDA and clauses for the appointment letter
- IP assignment, exit acknowledgement, breach notice
- Why the non-compete is void and what to do instead
What is inside the pack
Eight formats. Read section 2 before you add a clause.
The agreement and its clauses
A standalone employee confidentiality agreement, the same clauses cut to paste into an appointment letter, and a schedule that says what is confidential and what is not.
IP assignment annexure
Assigns the copyright and the right to apply for a patent, names the work, the term and the territory, and adds an invention disclosure form.
Exit and contractor versions
A return of property and exit acknowledgement signed with the relieving letter, and a consultant NDA that carries its own IP assignment and the data processing terms the DPDP Act asks for.
Breach notice and manager's guide
A notice that names the clause, the information and the remedy, and a one-page guide on what cannot go into an NDA, from a non-compete to a salary deduction.
The law behind each clause
What an NDA can and cannot do, the clauses that fail, who owns the work, enforcing a breach, personal data, who each rule reaches, and forty citations.
One record per employee
Attendo (formerly Petpooja Payroll) keeps each employee's documents, attendance and salary in one record, for every branch.
Why the usual NDA protects less than it promises
Because the usual non-disclosure agreement for employees is two agreements stapled together, and Indian law treats them in opposite ways. One restrains information. The other restrains a person.
A confidentiality clause is an ordinary contract: free consent, lawful object, enforceable. A clause that stops the employee working for a rival after leaving is void to that extent under section 27 of the Contract Act, and the section carries no test of reasonableness in its operative words, so one city and six months does not save it. The employment agreement pack sets out that argument in full; this one builds the clauses that survive it.
Then there is the work itself. Copyright in a work made in the course of employment vests in the employer by default, but an assignment that names no term runs five years and stops at the border, and a patent has no employer default at all. A consultant sits outside the copyright default entirely. The pack's IP annexure fixes each of these in writing and names the work, which is easier when the job description for the role already says what the work is.
And the breach. A sum named in the NDA is a ceiling on reasonable compensation, not a debt, and it cannot be deducted from wages, which the Code on Wages lists exhaustively. What you can do is claim the actual loss, ask a court to restrain the disclosure, treat it as misconduct where your standing orders say so, and, where the leak is personal data, point to the IT Act penalty for disclosure in breach of a lawful contract. The NDA for employees in India is the lawful contract that penalty needs.
The same pack serves a plant guarding its process sheets, a startup guarding its source code, a hospital guarding patient records and a sales office guarding its price list: the schedule changes, the clauses do not.
Five clauses five different fates
Whichever confidentiality agreement format you start from, each clause in it stands or falls on its own section, and the pack says which.
- Keep information confidential, during and after. An ordinary contract. Enforceable, with damages for the loss and an injunction to stop further disclosure.
- Do not work for a competitor after leaving. Void to that extent under section 27, whatever the period or the city.
- Pay ₹5,00,000 on any breach. A ceiling on reasonable compensation, not a debt that falls due, and never recovered by deduction from wages.
| Clause | Holds? | Rests on | What to write instead | Format | Our reading? |
|---|---|---|---|---|---|
| Confidentiality, during and after employment | Yes | Contract Act s.10 | List the categories in a schedule, carve out general skill | 01 to 03 | No |
| Non-compete after leaving | No | Contract Act s.27 | Nothing. Protect the information, not the move | 08 | No |
| Assignment of copyright and inventions | Yes, in writing | Copyright s.17(c), s.19; Patents s.6, s.68 | Name the work, the rights, the term and the territory | 04 | No |
| A fixed sum payable on breach | As a ceiling | Contract Act s.74 | Claim the loss under s.73; never deduct it from wages | 07 | No |
| Non-solicitation of staff and clients after leaving | Open | s.27 | Staff only, active inducement; no client limb | 01 | Yes |
Three numbers behind an NDA
IT Act s.72A, a penalty since 30-Nov-2023 rather than an offence. The NDA is the lawful contract it needs.
Source: Jan Vishwas (Amendment of Provisions) Act, 2023, Schedule, IT Act s.72AAnd it stops at India's border when it names no territory. A blanket 'all IP vests in the Company' line does both.
Source: Copyright Act, 1957, s.19(5) and s.19(6)6 Employee NDA Mistakes Indian Employers Make
Calling a non-compete an NDA
The confidentiality half holds. The no-rival-employer half is void to that extent, and it taints how the rest reads.
Barring 'knowledge, skill and experience'
That is a non-compete in different words, because skill and experience are what a profession consists of. Schedule the information instead.
Recovering the penalty from the last salary
Wages allow only the listed deductions, and a breach of contract is not one. Pay the settlement in full and claim it separately, as notice period recovery is.
Assuming the company owns every invention
Copyright comes to you by default. A patent does not: without a written assignment the employee is the one entitled to apply.
Treating a leak as misconduct with no enquiry
Disclosure is listed misconduct under the model standing orders, for workers, not managers, at 300 or more workers on any day of the preceding twelve months, which means a charge sheet and an enquiry, not a dismissal by email.
Shifting your data duties onto the employee
From 13-May-2027 the DPDP Act keeps the employer responsible irrespective of any agreement to the contrary. The NDA adds a duty; it moves none.
The usual NDA template against this pack
The usual template
A US non-disclosure agreement format with the currency changed
- Non-compete for a year
- 'All IP vests in the Company'
- ₹5,00,000 penalty on breach
- 'Confidential' means everything
- Nothing on exit or on contractors
This pack
Eight formats, each on its section
- Protects the information, not the move
- Work, rights, term and territory named
- Loss claimed under s.73, nothing deducted
- A schedule with carve-outs
- Exit acknowledgement and consultant NDA
Protect what is actually yours
Sign the NDA and IP annexure at joining, the exit acknowledgement on leaving. After a breach, preserve the evidence, then send Format 07.
Common questions
Is this employee NDA template really free? +
Is an NDA format for employees enforceable in India? +
Can I stop an employee joining a competitor after they leave? +
Who owns the work an employee creates? +
What happens if an employee breaks the NDA? +
About Attendo
Attendo (formerly Petpooja Payroll) is payroll and attendance software used by 40,000+ businesses across manufacturing, corporate offices, retail, hospitals and education. General guidance, not legal advice. This pack is one of our free HR agreements and formats, each built from the statute rather than from other templates.
Get the employee NDA pack
Eight formats, from the NDA in Word to the breach notice, with the section behind each clause and forty citations. Free.

