The present topic relates to restraint of trade and non compete clause in the light of the intellectual property rights regime prevalent in India. Commercial contracts of a varied nature seek to impose restrictions on employee mobility in today's commercial world. The present work studies the restraint of trade clause with special reference to Indian Contract Act, 1872 and the legislation prevalent in UK. The aspect of imposition of restraint of trade to protect business secrets is also looked at in light of the intellectual property rights regime.