Quick answer: A non disclosure agreement is a contract that obliges your employee to keep defined confidential information secret, both while employed and after leaving. India has no trade secrets statute, so the NDA, the Indian Contract Act, 1872 and court injunctions do the work. Unlike a post-exit non-compete, a well-drawn confidentiality duty survives exit.
- India has no codified trade secrets law. A Law Commission draft bill of 2024 has not been enacted.
- Courts protect information only where you can say what is secret and how you kept it secret.
- Customer lists are not automatically trade secrets, per the Delhi High Court in 2018.
- Employee personal data falls under the DPDP Act, 2023, with most duties applying from 13 May 2027.
What does an NDA protect in India?
Information that is actually confidential, specifically described and actively guarded. That is the NDA meaning Indian courts apply.
The Delhi High Court in Navigators Logistics v Kashif Qureshi rejected a claim because the employer never said which data was secret or what steps protected it, beyond the contract clause itself. Vague wording lost the case.
So an NDA for employees India courts will back should name categories:
- Source code, models and unreleased product plans
- Pricing, margins and bid strategy
- Client contracts and non-public client data
- Formulae, processes and technical know-how
Then back the clause with conduct. Access controls, marked documents and exit reminders show the information was treated as secret.
Using an employer of record changes one detail. The employee signs with the EOR, which is the legal employer, yet the secrets are yours. So the NDA should name your company’s information expressly as protected. Your services agreement should let the EOR enforce it for you.
How is an NDA different from a non-compete?
An NDA limits what a former employee discloses. A non-compete clause limits where they work. India treats them very differently.
| NDA | Post-exit non-compete | |
|---|---|---|
| Legal footing | Contract Act and court injunctions | Void under section 27 |
| Survives exit | Yes, for genuine secrets | No |
| What you must prove | The secret and its protection | Nothing will save it |
Hence the smart move is to put your effort into confidentiality and an IP assignment clause, not a ban on competition.
Does the NDA cover employee data too?
No. Your duty over employees’ own personal data comes from the DPDP Act 2023, not from the NDA. The Act lets you process data for employment purposes as a legitimate use, but notice, security and retention duties still apply.
How does Remunance handle confidentiality for your India team?
Remunance writes confidentiality and IP terms into every employment contract we issue as employer. Our ISO/IEC 27001:2022 certification covers how we hold payroll and HR data. That gives you contract terms and evidence of protection in one place. To tighten yours, speak to our contracts team.
What else do people ask about NDAs in India?
Is an NDA legally binding in India?
Yes. It is a contract under the Indian Contract Act, 1872, and courts enforce it where the information is genuinely confidential and clearly identified.
How long does an employee NDA last after leaving?
As long as the contract says and the information stays confidential. Many Indian NDAs run indefinitely for trade secrets and two to five years for other business information.
Can an NDA stop an employee joining a competitor?
No. It can stop them disclosing your secrets at the new job, but it cannot bar the job itself without becoming a void restraint of trade.