Ywaipl11Myself Prakash. I am working in MNC company. Our production manager giving resign. Our company in automobile . He having exp.more than 8 years of same field.
Management not giving him acceptane. They want in written from production manager that he not going to join any competitor, customer. Manager refused to give in written the same.
Please inform that management asking is correct or not. How to close this issue
From India, Pune
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Dinesh DivekarDear friend,
What you are asking is against the law. Check the following link to refer past discussion:
From India, Bangalore
kamesh333Mr.Prakash.. Leave the other points aside and keep yourself into the situation. If you continue to work for 10yrs with an automobile industry in general you also prefer to work for another automobile industry hence your out going GM has to opt for automobile industry only and obtaining a bond comes under bonded labour and at Supreme court level there are "N" number of judgements that such bonds are unethical / illegal and don't sustain. If your GM complaints with police or raise a dispute in the court you all have to face the consequences.
In case your GM leaves and starts a consultancy / joins as a consultant / freelancer what you people can do. You all should mind that the out going employee should leave the company with full satisfaction & happy as they are going to be the ambassadors of the company and any negative talk will spoil the image of the company.
Specifically in the present employee driven organizations we need to take care of people. Actions like Bond / agreement will spoil the image of the company. As per the communication your's is an MNC & the process what you mentioned in your communication shall be done by road side vendors & unethical organizations. Pl advise the management accordingly,
From India, Hyderabad
Ywaipl11Thanks Sir for your reply. I totally agree with your suggestions. It is very difficult to convince management. Our management is korean management. They never listen. It is very difficult to explain them . Regarding this issue i will follow your points and try to advice managment. Thanks for giving useful information .
From India, Pune
Further to what Kamesh mentioned, the situation you mentioned would come under the purview of something called Non-Compete Clause/Agreement.
Usually this is got signed by the Company while joining,,,,NOT while leaving/resigning. Maybe in your Company's case they may have had some recent issues of people leaving & joining competitors.
However, pl note that this practice is NOT illegal PROVIDED.....repeat PROVIDED.... there's a timeline associated with it. Like 'you can't join competitor companies within 1/2/3/........ years'. In fact even the Indian Defence Forces have this Clause [called 'Cooling Period'] where the Officer can't join any Company which has done business with the Armed Forces AND in which the individual concerned has been involved, for a period of 1 year after being relieved from the Forces.
One can't have a timeless or permanent barring of joining competitors......like Kamesh indicated.
The primary purpose of this is to protect the Company trade secrets, etc & more senior the person quitting, more seriously is this followed.
And I don't think your Company being Korean has anything to do with this situation---Korean, Japanese & Western Companies have this practice as a SOP which, like I mentioned above, is a part of the initial Joining policy itself. I wouldn't be surprised IF your Production manager knew about this earlier itself but chose to ignore it until now.
From India, Hyderabad