Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Dear HR Members,

I am in a strange situation, I am working with a France Based MNC. I Resigned recently while releasing they asked to signed a document saying " you cannot join any competitive or same nature business organization" when i defend they denied to give me releasing letter. So, I have signed and as my joining was on the next day. i was having no other choice.

The company I joined is a competitive company as in this business there are only few companies which deals in same product.

Now my previous organization is taking legal action and sending me the legal notice.

few thing I need to clarify :

1.My offer letter does not have such clause however confidentially clause is there " i hope this is common"

2. when I resigned i never get any intimation from HR than there is any such policy they are enforcing

3. As there are only few company in this particular sector, so employee shift each to other. and this is obvious for growth

4. I was having very good performance during my tenure in this organization

5. there are several employees in the past who left and joined competitive organization but they did not asked to singed any such document.

please help what should i do?

Is there is anything i need to worry about.?

thanks in advance for your suggestion

Dear Concerned,


Let me first tell you that you are possibly safe in leaving the organisation, however, if your previous employer has gone to court, you will have to respond and you should.

1. Common or uncommon, you must ensure that you adhere to confidentiality clause. Be sure that you do not divulge any detail ( confidential is a very subjective term) of your previous employer to your new employer, in order to earn brownie points.

2. No intimation from HR at the time of resignation should work in your favor in the court.

3. This point is valid. Since you are specialized in this trade, you will logically get a job in the same natured business. Normally, court take due cognizance of this fact.

4. Should work in your favor, if you go to court. Probably, this is the reason , why your present employer is miffed to this extent.

5. There could be various reasons for that. They may not be privy to confidential information, but you may be. They might not have received the same training about product but you might have.

Company may also want to set an example so that other employees think twice before leaving.

You should be responding to their legal notice. Companies are in stronger position when they give specialised training and are not able to recover training cost because of employees' exit. They are also in stronger position when they are able to prove that "you joining a rival organisation will tantamount to restraint of trade". However, it is easier said than done.

If you can prove that you have not divulged any confidential information and your outgoing will not amount to restraint of trade for your previous employer , you should be safe. Always keep in mind that India labour law is favored against employers and employees always have an upper hand.

But, before you take legal recourse, there is no harm in asking HR for leniency by explaining that it is nothing but a gradual shift and that you value your association with your previous emploer.

Thank you so much for your suggestion
I am not involve in any confedential information sharing in my new organizations. I am into a new project ..
Which is diffrent set of task and performance.
I never indulge in any legal activity till now. I am realy upset with this. I performed so well and they are doing this
How a HR can act like this.?
However officially I don't have any information till now but but internally I came to know that they are doing g so.

To update ...they Hold my Full n Final amount. And start giving me bullshit excuses that " I have joined a competitor and they will seek approval from regional head. But I know there is no such policy.
I don't have any big amount. But it is my right.
I have email where they mentioned that I will get my full n final amount in 15 days.
How a HR can do this?
They also hold one of former employees PF amount and head hr is not singing the form for processing.
Please suggest what to do?

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™