Legal policy for employee - CiteHR
Kamalkantps
Advocate
Kritarth Consulting
Spl Educators Posh Programs; Hr & Ir
+1 Other

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Hi Volks,
I want to create a new policy for my employees, wherein post their resignation / termination they are not allowed to join same nature of company & not even they can start their own company with same type of work.
It would be really helpful if any one can share some content for the same.
Regards
Mukul Chopra

Hi Mukul,
You need to review your thoughts on making such policy.
As you can not bind them over after they resign or get disengaged from work.How do you dictate their terms after they quit your organization?

Pursuing any Profession or avocation or being Gainfully Self-Reliant financially and otherwise isone of teFundamental Rights of we the People of India, guaranteed by ourConstitituion and is Enforceable.Please Refer to Articles 14, 19, 21 etc in our Constitutional Rights and you and your Employer shall be Enlightend in yourown Safeguard. Lets all be Law-Obedient NOT Law-breaking Indian Nationals
Reminder Restated by Kritarth Team
28.2.2019

In addition to the guidance given by seniors above, you should understand that a policy of a company shall be in consonance with public policy outlined in various laws and the Constitution, failing which it will not stand legal scrutiny.
B.Saikumar
HR & Labour Relations Consultant

Dear Mukul,
What you are looking for is called a NON COMPETE POLICY. However to make it enforceable it must be confined to a reasonable Geographical Limit and the time limit. If a person has worked in an industry for a considerable time the person gains an industry specific experience, which cannot be taken from him. However to safeguard yourself from competition you may set a Geographic Limit of say 2-3 Kms. You may put timelines that a particular person may not open a company or work for a competitor within 2-3 Kms of the work place lets say for 6 months. Also the same would also depend on Industry you are in. Like in Hotel one may add this restriction that you will not open a restaurant/Hotel or work for one for a specific time and geographical limit but in IT Sector it may not be enforced. You must be reasonable about it. Hope this clears your doubts.

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