PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Principal Hr Consultant
Venkata Vamsi Krishna Patnaik
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consultmeThis is kind of a monopolized trade agreement. I am not finding this as fair.
However as the employment terms is primarily considered as a contract between employee and employer, you have to examine the sanctity of this with a contract expert or a legal professional.
From India, Bangalore
Venkata Vamsi Krishna PatnaikHow can anybody bind after the termination of the contract? This type of contract is invalid in legal scenario. Whoever wants this kind of agreement to be signed cannot be fruitful in the purpose.
From India, Hyderabad
KK!HRDear Sir, As per Contract law, two consulting adults of sound mind can make a valid, enforceable agreement on anything which is not illegal as such. A clause prohibiting future employment in a competitive firm is not illegal per se. The clause may sound unjust or harsh or one-sided but that does not render it illegal in the eyes of law. Protection of Intellectual Property or trade secrets are the rights of a firm and this is definitely a way to ensure this. How this agreement can be enforced is to be bothered by the firm, though not a very easy task.
From India, Mumbai
Bharat GeraDear Friend,
Companies thrive on one key principle, "Fear Is The Key" they know that the poor employee will get scared with these unfair business tactics. Companies know that one single employee will not have guts and capacty to fight the might of a Corporate who has all the resources at there disposal.
Restrictive clause are product of such perverted thinking. Though such practices are illegal as in some cases courts have held it to be unfair and illegal.
Unless the specific instances are clearly and outlined with the logical reasoning, its illegal and unenforceable.
Motherhood statements of restriction are void ab initio.
The employee learns some thing new with every job, if every employer starts putting such restrictions there will be chaos. These restrictions violate right of employee to learn and exercise the acquired skill freely. Incompetent companies are scared of competition enforce such restrictions so that the employees are prevented from joining competition
I am personally against any such restriction.
From India, Thane
Venkata Vamsi Krishna PatnaikI agree with Mr.Bharat and moreover an employee who is working has to be attracted to work for a longer term in the organization with better conditions and pay. This will definitely motivate him to come back even after his voluntary exit.
Management should be made known by HR about this kind of policy and employment terms,instead of these absurd terms in employment clause.
From India, Hyderabad