31st March 2016 From India, Delhi
31st March 2016 From India, Delhi
Refer the links below.
No one can force you to stop your business even if it same as your previous employer.
Non Compete Clauses and The Indian Contract Act, 1972
You have written that "After 6 months they gave me a 100rs bond paper stating it as contract and compulsory to sing it if i have to retain the job". We need to know the contents of the bond. Secondly, roughly what are the main contents of the lawyer's notice?
First thing seek appropriate legal advice from a local lawyer.
As learned member above has questioned-what is the wording of the contract?
What type of business have you started?
No one can stop you from starting a competing business,only you cannot use your previous employer data as a base.
There are posts in this forum regarding similar problems use search button to get an idea.
Contract Act protects you to some extent while giving duties to obey contract signed of free will.
Your lawyer will see all aspects of the case all papers and give you right advice.
The main clause of that agreement that i violated according to their lawyer was as:
1) "In the event employee leaving the service of the company in breach of agreement and he shall not serve in any capacity whatsoever or be associated with any person,firm or company carrying on such business for the reminder of the said period(3 Years) and in addition pay to the company as liquidated damages an amount equal to the salary of the employee would have received during the period of sixty months as calculated based on last drawn salary and shall further reimburse to the company any amount that the company may have spent on training."
2) They are thinking that i have joined hands with their competitors and informing their secrets and approaching their client. Where as the truth is I have established my company on my own and all my clients are earned by me through marketing activities. and my products/models are different from theirs.
3) They are stating that they have occurred heavy loses and asked me to pay 60 months salary as per my last drawn salary. And asked to pay the same within 7 days on failing which they will move to court. This letter was received on September 2015 and no updates after that.
I consulted my lawyer and he states me that I need not to worry of this notice and suggested me to file case on them for threatening me to pay above amount and stopping me to take the carrier of my choice.
I am a startup, and don't want any hassles right at the start of my business carrier. So iam just waiting to complete 3 years. I left that company in October 2013. This post was just to get the clearer picture on shall I wait or go on to build my business..
As a fresher no one wanted to leave the job after 6 months as it would affect further progress badly.
And I had two options: either to sign or to quit the job.
@nathrao: Mine is a electronic trading company. My previous company is a manufacturer and trader of similar components. Mine models are different from theirs completely.
What products was company dealing with in electronic trading and what are you planning to deal with-give details?
You are legally entitled to start your own business.Other than divulging your previous employers secrets,trade marks etc the concept of free business applies.
Carry on with your job and build up business.
Take your lawyers advice and if needed a second opinion of another lawyer.
This is classic way of keeping ex employees under pressure.