Companies tightening contracts to make exit tough for senior executives

Contracts and policies are being made tighter to make an exit difficult, including longer notice periods and extended non-poaching contracts..

Indian companies are aggressively tightening employment contracts for top executives to make them more binding by incorporating stricter non-compete and non-solicitation clauses, at a time when there is a cut-throat competition for senior talent and rampant poaching of C-suite brass...

While non-competes cannot be enforced against an employee post-employment, contracts and policies are being made tighter to make an exit difficult, said top lawyers and company officials...

Sumit Mitra, head of human resources at Godrej Consumer Products, said: Contracts with non-compete clauses legally hold little water, while everyone takes care to protect company confidentiality...

While the restrictive covenant tenure for key executives usually ranged from six months to one year, organisations have considered additional tenure for specific key employees who occupy positions of financial and strategic responsibility, said Anshul Prakash, partner at law firm Khaitan & Co...

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