Joining Competition Bond And Cheque Taken By Company - CiteHR
Recruitment/talent Acquisition, Career Counselling
Learning & Teaching Fellow (retired)
+3 Others

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Hi I served my notice period with my last company it was 3 months notice the company provided me with my relieving letter on my last working day however now when I need to collect my final settlement amount the company has asked me to come with a blank chq to submit and also sign a bond or agreement for not joining any competition.
Please suggest this company has around 200 employees and does not have PF for their employees however they are strong in legal department. I worked as an operations manager.
I am very confused and wonder how can any company just with its money play with our careers in such a way there r so many people who want jobs but because of this dictatorship r suffering.
I really need a smart solution.

Also I was thinking of submitting the chq and then making a stop payment and just signing of the agreement as in your forums before one of the members have claimed that nothing can be done and anyone can join any company. Please let me know if this can be feasible.

Hello Raj,

Based on what you mentioned, seems that the Non-Compete clause was informed to you ONLY @ the time of F&F.....and NOT while you were working there.

IF correct, then you don't have to worry--since you will be bound by what's mentioned in the Appointment Letter when you initially joined this Company.

The options open to you also depend on how much of amount is involved in the F&F--IF it's not very high, best is to ignore it & move forward. You would save any hassles & can focus on your career, since you would have already got your Relieving & Experience Letters.

However, IF the amount involved is high, suggest put things in-writing--obviously, the Company wouldn't do it from their end. But YOU could ask for them to mail the Agreement Format to you--to enable you to see it once before signing it. The more interaction you put in-writing, the better. Whether you will use it or not ISN'T the point. But IF AT ALL you need any evidence of this interaction later, you surely won't get it at that point of time.

Hope you get the point.

Then you can go ahead & implement what you mentioned. Legally, you can always take the stand--IF it does go legal--that you were coerced into signing it.

All the Best.



Heloo Raj
It’s not a issue it was better you may had purchase the 3 months period after adjusting your Privilege Leave . Now when u already completed your three Months notice there is no issue and there is no need to sign any bond or agreement for not joining any competitor .Only need is not to disclose any details with your old company to the new company if you had signed non disclose agreement in your old company

Please do not give any blank cheque. As you have not given any idea of the amount due from the firm, please follow the advice given by TS.
Interesting, but what inspired you to join competitor, as I understand competitor company is not as big this one was??? My experience in such cases is; people have not grown big.
As Taj Sateesh has rightly said, if the FNF amount is meager then it is advisable to forgo and pursue with your career ahead without any hassles. If the FNF amount is huge as other seniors advised no need to give a blank cheque as well as sign the agreement, send a letter claiming the FNF, if they give you response let the forum know, to give you appropriate response. You can also claim your settlement through legally if it affords you.
You have two options, (1) amount is small, and (2) amount is big.

If amount of F&F is small, do not sign any agreement or give any blank cheque, and be prepared for loosing this money. At the same time keep your efforts of recovering monies on by reminding them, weekly, by all means of communicaton, phones, emails, letters, and mark cc to labour inspector, factory inspector, company’s Directors etc. (Actually do not send these CCs, it should appear only on originals, cc to :…..). Do this exercise continuously, for two months, three months, and so on. At one point, your HR will get fed up, and looking at smaller amount, to avoid nuisance, they will make payment.

If amount is big, and company is insisting for agreement as well cheque, try to remember your past working days with them. You must have seen, during your tenure with them, whether they are really serious and particular for compeling this kind of documentation, and unless the same is done, they do not make F&F of employees (though this is illegal). If at all, answer is YES, you do not have any option, but to fight legally, and get your monies.

My suggestion, think proper order in which you should move ahead. Do not think to give first legal fight and then recover money. This situation will make you to pay heavy amounts from your own pocket towards legal expenses, and also tremendous tension whether you will be winning or not.

Think the otherway… Get the money first and then go for legal battle.. Sign the Agreement, Give them cheque. Get your monies cashed to your account (which we presume is a big amount… say 1 lac etc), and then you yourself send them lawyer’s notice that Agreement signed by you was not willful and also without knowing contents of the same and ofcourse which is illegal by our Constitutional rights. Make immediate stop payment of your cheque. And then relax, not totally, but to a great extent.

Here the moneys are already in your pocket, and out of the same kitty, some portion, say 10%, you keep aside for court matters, that too if company really decides to harass you. And remaining money you can enjoy as per your wish. (In the first Option above, or otherwise we had decided to forgo the F&F, if the amount is small. Now the same small amount, you are spending on your Lawyer).

Another situation, since we presumed F&F amount is big, say about a Lac, keep this money directly in Bank’s fixed deposit, and on the interest earned from the said FD (It will be about 10000/annum), you will be able to pay your lawyers fees. In a worst scenario, if you loose the case, you may have to pay some penalties to your company, and your Bank FD will take care of it.

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