India, June 27 -- Looking for better job prospects after quitting? The Delhi High Court says that's legal your right-and no company can take it away.

In a significant ruling aimed at curbing the misuse of restrictive employment contracts, the Delhi High Court has ruled that employers cannot prevent former employees from taking up new jobs, including with their clients or associates. Any clause that forces them to choose between going back to their old boss or staying unemployed, the ruling declared, is not allowed under Indian law.

"An employee cannot be confronted with the situation where he has to either work for the previous employer or remain idle," said justice Tejas Karia. "Freedom of changing employment for improving service cond...