While non-compete clauses, seeking to restrict employees from engaging with competitors or starting competing businesses are void, under Section 27 of the Indian Contract Act, 1872, such covenants are rendered unenforceable after cessation of employment, as they are considered restraints of trade. However, reasonable restrictions during the term of employment—for example, prohibiting concurrent engagement with competitors—are valid and enforceable. When it comes to clauses mandating confidentiality and non-disclosure of the employer’s proprietary, confidential, or trade secret information are legally enforceable, both during and post-employment.

Conflicts frequently arise over conclusiveness of probation, extension procedures, and performance evaluation, particularly regarding rights of termination and regularization.

Employees sometimes challenge adverse appraisals, denied promotions, or performance improvement processes as being unfair, arbitrary, or lacking transparency.

Disputes over termination for misconduct, redundancy, or non-performance are common—especially where process or severance entitlements are not followed as per statute or contract.

Claims regarding wrongful denial of statutory or contractual leave, miscalculation of earned leave, or non-grant of holidays are routinely raised.

Litigation often concerns delayed or denied payment of gratuity, provident fund, ESI, and bonus, sometimes resulting in proceedings before labour commissioners or statutory authorities.