Under Section 27 of the Indian Contract Act 1872
A non-compete clause is prohibited under the Law of Contracts. Section 27 of the Contract Act provides – 'Every agreement by which anyone is restrained from exercising a lawful profession or trade or business of any kind, is to that extent void.
This is a proforma of  non-compete agreement during an employment agreement to prohibit employees from engaging in a similar business or profession during the course of employment or following the termination of employment for a specified period of time in order to protect the employers' business