Dear senior members, I have a query regarding a non-compete clause. It basically says I can't work for 10 years throughout the world for any competing business. However, there is no definition of a competing business in the contract signed by me.

The company promised training but did not provide the same. The company made us sign a 10 lakh indemnity bond. Few members were provided training and few weren't.

Also in the contract company promised hike every year. But due to my manager's first year, it was delayed by 6 months, the second year by 10 months, 3 rd year they paid on time. 4th and 5th year no hike at all. In fact they cut pay and they are yet to pay back the arrears.

I resigned but the management has not taken any papers but verbally accepted it. My manager threatened to slap me I quit. I was in the R & D earlier now I am in marketing for the last 4 months. I submitted all the confidential data of the old profile.

What can the company do in case of breach of the non-compete? Can they make false accusations such as data theft?
Please advise.

Management Consultancy


A non-compete clause, it is easy to get signed by the employee but not so easy to implement. In the wide world, will it be possible to chase every resigned employee and enforce the clause?. But there are certain industry associations and the member organisations have formal or informal agreements not to poach each other's employees and also discourage such lateral movements. In case the new organisation you are opting to join has such agreements then it may cause problems later. Otherwise knowing the lax way the litigations progress and end up here, you can be optimistic that nothing adverse is likely to happen.
Data theft cannot be made of the information which is already in the public domain or what is available to all. To accuse you of data theft there has to be some data that they have marked as confidential, has been made use of by you post-termination of service.

From India, Mumbai

Your resignation accepted verbally has got no meaning. Unnecessarily wandering in woods first get your relive letter from the company, which will be your proof that you left the company in a smooth way.

You should send a request letter to issue relive letter or a lawyer notice to this extent. Do not take any strain over the matter of unnecessary things. Things can be tackled if it comes but you do what is most important for you now.

From India, Mumbai

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