Dear Esteemed Members,
May I request all members to please provide some information about the discriminator "No Poach Policy" which is being adopted by many MNC these days. Is there any law (IPC, Company Law or Labour Law) prevalent in Indian territory which allows such practice in India ?
Today, I have lodged one complaint against such kind of unethical and discriminatory practice which is being followed by many employers in India. The complaint has been registered with the Registrar of Companies, Ministry of Company/Corporate Affairs Govt of India and via Centralized Public Grievance Redress and Monitoring System (CPGRAMS).
Is there any mode where an official complaint can be lodged ? Please advise.
Looking for a vaulable thoughts in this higly sensitive matter.
G S Anand

From India, Delhi
Retired Government Servant/advocate
Hi All,
Is there any knowledgeable HR professional / lawyer who is very well versed in Labour Laws who can help on my query which was posted few days back ?
I would really appreciate if anyone of the senior/vintage members of this forum who can help me in this reagrd.
Anxiously waiting for valuable thoughts/ help .
G S Anand

From India, Delhi
Hi All,
It is very surprising and shocking to see that no one (vintage/senior members) in this social forum has been responded to my query yet. I believe many of the experts have seen this thread but no one is interested to make some legible comments towards my query.
Does it mean that Is there no one in this entire forum wants me to help on this small query ? I am anxiously waiting for a valid and logical responses from the Human resources experts/ Labour law professionals who are following this social platform.
G S Anand

From India, Delhi

"Employment at WILL" I hope everyone is aware of this basic principle/right of an employee. You/we can frame 'n' number of policies on "No poach" or "No Hire" between/among the companies. You can't restrict one to not to choose a job at your WILL. Employment choosing is purely at Individuals WILL. Some intellectual brain can write a policy on this, but you can only restrict one person for a limited period of time by showing lot evidences which takes lot of time lot of brain merging. Yes, companies can obtain NCA, NSA agreements from employees.
Companies can have NCA, NSA among them. When it comes to reality these type of trades will be treated as unethical, restricting the rights of an individual given by constituency. Obviously those trades are void. I hope you can understand.
I hope our seniors will start guiding us on this topic.

From India, Hyderabad
Thanks for your thoughts.!!
But I was expecting an information about the prevailing law in India (if any) which endorses this unethical practice which is being followed/adopted by many organizations.
As you mentioned that Employment choosing purely at individual's WILL. But here, my question is why Employer is doing discrimination while putting this DISCRIMINATORY policy in place.
As already cited above , I have lodged official complaint against one of the MNC in the office of Ministry of Company Affairs, via CPGRAMS and with the Registrar of Companies at Delhi.
I'm waiting for an expert and logical advise from vintage & senior members
about this issue regarding the other source of complaints.
Anxiously waiting for an opinions.
G S Anand

From India, Delhi

It is completely illegal as per contract act section 27. Supreme court has held many times that such a condition is illegal.

I am quoting some judgements in this regard. Even if an employee signs such a bond (I will not join a competitior within 2 years or something like it) it is not valid)

Gujarat – Lalbhai Dalpatbhai & Co Vs Chittaranjan Chandulal Pandya, AIR 1996 Guj Restriction on employee after termination of employment is not valid. Employee does not have any bargaining power and has to sign on dotted line.
“9....If it is not going to benefit ”the employer in any legitimate manner, the court would not injunct the employee from exercising his skill, training and knowledge merely because the employee has agreed to it”

Gujarat – Sandhya Organic Chemicals P Ltd Vs United Phosphorous Ltd, AIR 1997 Guj 177. as per contract act, service covenant beyond service period is not valid.
“16....The supreme court has also ruled that under section 27 of the contract act, a service covenant beyond the termination of the service is void”

Supreme court – Superintendence Company of India Vs Krishnan Murgai, AIR 1980 SC 1717. Post service conditions are not valid. Even partial condition is not valid. Inequality of bargaining power with employees and harsh and oppressive conditions make the contract invalid.
“29.A contract, which has for its object a restraint of trade, is prima facie void....whether the restraint was general or partial, unqualified or qualified, if it was in the nature of a restraint of trade, it was void.
32.....If the agreement puts a restraint even though partial, it was void and therefore, the contract must be treated as one which can not be enforced.
53....Not a Indian Decision has been brought to our notice where an injunction has been granted against an employee after the termination of his employment.
58....If the covenant is to operate after the termination of services, or it is too widely worded, the court may refuse to enforce it.
59....there is inequality of bargaining power between the parties, indeed no bargaining may occur because the employee is presented with a standard form of contract to accept or reject... ”
Supreme court – Moti Ram Deka Vs East Frontier Railways, AIR 1964 SC 600. If a contract is not valid as per contract act, the fact that it was signed by the employee is of no avail as decided by 7 judge constitutional bench.
“ is well known that if the contract is void, as for instance, under section 23 of the Indian contract act, the plea that it was executed by the party would be to no avail....”
Supreme court – Niranjan Shankar Golikari Vs Century Spinning, AIR 1967 SC 1098, negative covenant in a service agreement is void. Negative covenant after termination of contract is not valid.
Supreme court – Percept D Mark (India) Ltd Vs Zaheer Khan, AIR 2006 SC 3426, any condition after termination of contract will be invalid.
“55. On the pleading contained in the arbitration petition, there can be no escape from the conclusion that what the appellant sought to enforce was a negative covenant which, according to the appellant, survived the expiry of the agreement. This, the High Court has rightly held is impermissible as such clause which is sought to be enforced after the term of the contract is prima facie void under section 27 of the contract Act”
Supreme Court of India : Bank Of India & Ors vs O.P. Swarnakar Etc on 17 December, 2002, Bench: H Sema, S Sinha on the topic of VRS
..... It is difficult to accept the contention raised in the Bar that a contract of employment would not be governed by the Indian Contract Act. A contract of employment is also a subject matter of contract. Unless governed by a statute or statutory rules, the provisions of the Indian Contract Act would be only applicable at the formulation of the contract as also the determination thereof.

From India, Salem

Poaching, by common parlance means trespassing, esp. into another’s game preserve, to to hunt or steal or hunt animals!
From India, Kochi
Thanks Sas and Pvenu for your valuable thoughts on my query.. I really appreciate this..!! If any other member wants to throw some light on this sensitive issue, please do . Regards, G S Anand
From India, Delhi

A training bond is not valid
Undertaking that I will not work in competitor company not valid
Conditions after termination of employment are not valid
Any kind of bond restricting an employee (after he leaves - for whatever reason) not valid

From India, Salem

No poach is possible between a company to another company. The Law allows it.
But, such a condition can not be enforced on an employee.
An employee can work anywhere he wants. The constitution 19(1)(g) guarantees it
"Practice any profession he wants"

From India, Salem
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