A non-compete clause bars the employee from working with a competitor in a similar business. The clause could be made applicable - i) either during the period of employment, or ii) in the future, after termination. So, is a non-compete clause valid during the term of employment? Yes, it is valid during the course of employment. It binds employees to lawful employment while working with the employer. It is in the lawful interest of the employer to protect confidential information and trade secret