Post-employment non-compete clauses are void under Section 27 of the Indian Contract Act. What Indian courts say and what to do in 2026.

A Performance Improvement Plan (PIP) in India is a formal document your employer uses to put your underperformance on record and set time-bound targets — usually 30 to 90 days — for you to hit or face termination. Indian labour law does not define a PIP by that name, but courts treat it as a precursor to a performance-based dismissal, which means both sides have legal obligations the moment one is issued. If you have just received one, here is what actually matters: a PIP is not automatically a firing notice — but it is a legal paper trail your employer is building. Your response in the next few weeks will either strengthen or weaken your position. What Is a PIP and Why Do Indian Employers Use It? A PIP documents specific performance shortfalls, sets measurable improvement targets, and gives a timeline for review. Employers use it for two reasons: to give underperforming employees a structured chance to improve, and to create documented evidence before a termination decision — evidence that courts will scrutinise if the employee later files a dispute. In 2025–2026, PIP usage has spiked sharply in India’s IT sector. Major IT services companies — TCS, Infosys, Wipro,

TDS on salary India 2026: how Section 192 works, new regime slabs, Form 16 rights, and how salaried employees can pay zero tax up to ₹12.75 lakh.