Executor,
A non compete agreement is valid only if :
- the party has sold his business and agreed not to compete for a Limitied period of time
- was a promoter / co promoter and not an employee and agreed to a non compete again for limited time (and was not removed by unfair means)
If the person was an employee, then the non compete does not apply even of he was a part of the original team that started with the company.
Your client can very well go ahead and speak directly to each of the existing client and grab their business. The old company can do nothing about it
From India, Mumbai
2383A non compete agreement is valid only if :
- the party has sold his business and agreed not to compete for a Limitied period of time
- was a promoter / co promoter and not an employee and agreed to a non compete again for limited time (and was not removed by unfair means)
If the person was an employee, then the non compete does not apply even of he was a part of the original team that started with the company.
Your client can very well go ahead and speak directly to each of the existing client and grab their business. The old company can do nothing about it
From India, Mumbai
Here's a post on why Non-disclosure and Non-Compete agreements and under what conditions would they remain invalid, in India.
Legal case discussion on NDA and NCA
From India, Mumbai
Legal case discussion on NDA and NCA
From India, Mumbai
Hi (Cite Contribution)
I read the post with great interest.
However, there is an important point which seem to have been missed.
An employee can not be restrained from joining competing companies in any case. Only promotors / owners can be restrained. An employee can at best be prevented from sharing confidential information of the previous company and its trade secrets. Even in case of Hurd of HP, the case was not to prevent him from joining oracle as such. It was to prevent him from working in a certain position where he would use the company's trade secrets (which he knew on account of being CEO) against the company. And that too, was a case where he had got a golden handshake which included extra amount for a period of time when he would not be working for anyone (but I am told it was written wrongly).
From India, Mumbai
I read the post with great interest.
However, there is an important point which seem to have been missed.
An employee can not be restrained from joining competing companies in any case. Only promotors / owners can be restrained. An employee can at best be prevented from sharing confidential information of the previous company and its trade secrets. Even in case of Hurd of HP, the case was not to prevent him from joining oracle as such. It was to prevent him from working in a certain position where he would use the company's trade secrets (which he knew on account of being CEO) against the company. And that too, was a case where he had got a golden handshake which included extra amount for a period of time when he would not be working for anyone (but I am told it was written wrongly).
From India, Mumbai
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Dispciplinary Action.doc
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