Dear Seniors, I have received an employee agreement from an MNC company and need clarification on the terms and conditions. Please review the points below and provide your suggestions.
Terms of Termination of Employment
Notwithstanding any other provision hereof, the Company shall have the right and option to terminate with immediate effect without notice or on payment of one month's basic salary in lieu of notice if it has reasonable grounds to believe that you are guilty of misconduct or negligence, or have committed any breach of this Contract of Employment. Termination of the Contract of Employment under this sub-paragraph would be without prejudice to:
(i) The Company's right to claim actual damages it has suffered on account of breach of this Contract of Employment;
(ii) Any other relief to which the Company may be entitled under the Contract, law, or equity.
a) For the purposes of Clause 8.3 above, 'Misconduct' will include (without limitation) conviction for any crime involving moral turpitude or affecting the Company or its affiliates; (ii) any refusal to carry out any reasonable directive of the Company which involves the business of the Company or its affiliates and was capable of being lawfully performed; (iii) Embezzlement of funds of the Company or its affiliates; (iv) ownership, direct or indirect, of an interest in any person or entity (other than a minority interest in a publicly traded company) in competition with the products or services of the Company or its affiliates; (v) any breach of your fiduciary duties or duties of care to the Company (except for conduct taken in good faith); (vi) any substantial breach of this contract of Employment by you; and (vii) any conduct (other than conduct in good faith) materially detrimental to the Company or its affiliates, etc.
b) Immediately upon termination of your employment hereunder, you shall return to the Company all property of the Company heretofore provided to you by the Company, or otherwise in your custody, possession, or control.
c) Notwithstanding any provision of this contract of Employment to the contrary, no termination of this contract of Employment or of your Employment for any reason whatsoever shall in any manner operate to terminate, limit, or otherwise affect the Company's ownership of any of the rights, properties, privileges granted to the Company hereunder.
d) On termination of this Contract of Employment for any reason whatsoever, you shall fully cooperate and provide all assistance as may be necessary or reasonably required by the Company, for handing over to your successor the job responsibilities and functions, in a manner that would ensure continuity in the administration of the Company's affairs.
8.4. You shall be responsible and indemnify the Company for all the damages, losses, or injuries caused to the Company if there is any passing off/infringement of the intellectual property rights of any product/property of the Company or the Company, or its legal representatives, successors, assigns, or administrators. The Company shall initiate any civil or criminal proceedings against such conduct.
8.5. You shall hold our Company harmless and indemnified against all legal claims, damages, and liabilities arising from any action taken against you by any of your previous employers for any misconduct, breach of agreement, omission, or act of commission, performed by you during your Employment period with that previous employer(s).
Non-Competition Clause
9.1. During the Employment period and for a period of 24 (Twenty-Four) months after the end of the Employment period, the employee agrees that he/she will in no way or circumstances, whether directly or indirectly, solicit the customers/business of the Company and/or operate within the Employer's general trading area and/or work with any competitive business operator.
9.2. During the Employment period and for a period of 24 (Twenty-Four) months after the end of the Employment period, the employee agrees that he/she will in no way or circumstances, whether directly or indirectly, induce or attempt to induce or cause others to induce or attempt to induce any Employee of the Employer to leave the Company.
9.3. During the Employment period, the employee agrees that he/she in no way or circumstances, whether directly or indirectly, induce or attempt to induce or cause others to induce or attempt to induce, seek to divert customers or obtain any benefit from any of its customers.
The Company may initiate any action and/or other proceedings whatsoever, civil, or criminal against the employee including recovery of damages caused to the Company for a breach or threatened breach of the conditions mentioned in the above Clauses.
From India, Bangalore
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3Terms of Termination of Employment
Notwithstanding any other provision hereof, the Company shall have the right and option to terminate with immediate effect without notice or on payment of one month's basic salary in lieu of notice if it has reasonable grounds to believe that you are guilty of misconduct or negligence, or have committed any breach of this Contract of Employment. Termination of the Contract of Employment under this sub-paragraph would be without prejudice to:
(i) The Company's right to claim actual damages it has suffered on account of breach of this Contract of Employment;
(ii) Any other relief to which the Company may be entitled under the Contract, law, or equity.
a) For the purposes of Clause 8.3 above, 'Misconduct' will include (without limitation) conviction for any crime involving moral turpitude or affecting the Company or its affiliates; (ii) any refusal to carry out any reasonable directive of the Company which involves the business of the Company or its affiliates and was capable of being lawfully performed; (iii) Embezzlement of funds of the Company or its affiliates; (iv) ownership, direct or indirect, of an interest in any person or entity (other than a minority interest in a publicly traded company) in competition with the products or services of the Company or its affiliates; (v) any breach of your fiduciary duties or duties of care to the Company (except for conduct taken in good faith); (vi) any substantial breach of this contract of Employment by you; and (vii) any conduct (other than conduct in good faith) materially detrimental to the Company or its affiliates, etc.
b) Immediately upon termination of your employment hereunder, you shall return to the Company all property of the Company heretofore provided to you by the Company, or otherwise in your custody, possession, or control.
c) Notwithstanding any provision of this contract of Employment to the contrary, no termination of this contract of Employment or of your Employment for any reason whatsoever shall in any manner operate to terminate, limit, or otherwise affect the Company's ownership of any of the rights, properties, privileges granted to the Company hereunder.
d) On termination of this Contract of Employment for any reason whatsoever, you shall fully cooperate and provide all assistance as may be necessary or reasonably required by the Company, for handing over to your successor the job responsibilities and functions, in a manner that would ensure continuity in the administration of the Company's affairs.
8.4. You shall be responsible and indemnify the Company for all the damages, losses, or injuries caused to the Company if there is any passing off/infringement of the intellectual property rights of any product/property of the Company or the Company, or its legal representatives, successors, assigns, or administrators. The Company shall initiate any civil or criminal proceedings against such conduct.
8.5. You shall hold our Company harmless and indemnified against all legal claims, damages, and liabilities arising from any action taken against you by any of your previous employers for any misconduct, breach of agreement, omission, or act of commission, performed by you during your Employment period with that previous employer(s).
Non-Competition Clause
9.1. During the Employment period and for a period of 24 (Twenty-Four) months after the end of the Employment period, the employee agrees that he/she will in no way or circumstances, whether directly or indirectly, solicit the customers/business of the Company and/or operate within the Employer's general trading area and/or work with any competitive business operator.
9.2. During the Employment period and for a period of 24 (Twenty-Four) months after the end of the Employment period, the employee agrees that he/she will in no way or circumstances, whether directly or indirectly, induce or attempt to induce or cause others to induce or attempt to induce any Employee of the Employer to leave the Company.
9.3. During the Employment period, the employee agrees that he/she in no way or circumstances, whether directly or indirectly, induce or attempt to induce or cause others to induce or attempt to induce, seek to divert customers or obtain any benefit from any of its customers.
The Company may initiate any action and/or other proceedings whatsoever, civil, or criminal against the employee including recovery of damages caused to the Company for a breach or threatened breach of the conditions mentioned in the above Clauses.
From India, Bangalore
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As per the terms outlined in the employee agreement provided by the MNC company, it is crucial to understand the implications of the Terms of Termination of Employment and the Non-Competition Clause. Here are some key points to consider:
1. Terms of Termination of Employment:
- The company reserves the right to terminate your employment immediately without notice or by paying one month's basic salary in lieu of notice if there are grounds for misconduct, negligence, or breach of the employment contract.
- Misconduct is defined broadly and includes various actions such as criminal convictions, refusal to follow company directives, embezzlement, competing interests, breach of fiduciary duties, or conduct detrimental to the company.
- Upon termination, you are required to return all company property and cooperate in handing over responsibilities to your successor.
- You are liable for damages caused by any infringement of the company's intellectual property rights or legal claims from previous employers.
2. Non-Competition Clause:
- During and after employment, you are restricted from soliciting the company's customers, working with competitors, or inducing other employees to leave the company.
- Any breach of the non-competition clause may lead to legal action and damages against you.
It is essential to fully comprehend these clauses and seek clarification on any points that are unclear. If needed, consider consulting with a legal expert to ensure you are aware of your rights and obligations under the agreement.
From India, Gurugram
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1. Terms of Termination of Employment:
- The company reserves the right to terminate your employment immediately without notice or by paying one month's basic salary in lieu of notice if there are grounds for misconduct, negligence, or breach of the employment contract.
- Misconduct is defined broadly and includes various actions such as criminal convictions, refusal to follow company directives, embezzlement, competing interests, breach of fiduciary duties, or conduct detrimental to the company.
- Upon termination, you are required to return all company property and cooperate in handing over responsibilities to your successor.
- You are liable for damages caused by any infringement of the company's intellectual property rights or legal claims from previous employers.
2. Non-Competition Clause:
- During and after employment, you are restricted from soliciting the company's customers, working with competitors, or inducing other employees to leave the company.
- Any breach of the non-competition clause may lead to legal action and damages against you.
It is essential to fully comprehend these clauses and seek clarification on any points that are unclear. If needed, consider consulting with a legal expert to ensure you are aware of your rights and obligations under the agreement.
From India, Gurugram
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