My few senior employees to be specific 5 employees resigned together and started their own company
When they were on notice period they diverted our company business to their new company. Which in results made losses to us and also spoiled our name in market
My questions
A) can I take legal actions against them note there is no appointment letter in their name not any clause except our company policy
B) can I hold their gratuity and demand an explanation why they did this as they had been in this company for more than 17 years
C) what are the consequences later on they can put any legal notice to company if their amount is deducted
Also being old employees of company they know lots of details of companies which cannot be disclosed to anyone

Sr.manager - Hr&admin
Workplace Assessment And Training


A very unfortunate turn of events for you. However, the question I am asking myself is why did five employees leave after working with you for 17 years?? There could be any number of issues there including your management style, lack of ability to grow and develop new skills, salary, and the fact that they can do better elsewhere.

Unless each of them signed Non Disclosure Agreements to cover this situation, I think this is going to be hard. They may well have taken advantage of the probability that there appears to be no legally binding paperwork that prevents them. It sounds to me like you have little hope of "demanding" anything from them.

There is no doubt that what they have done is unethical, and they will bear that stain on their characters for a long time. However, if their new company can provide better, cheaper and more targeted services to the clients, I doubt they will care much.

Your task now is to rebuild your company and win the clients back with a more superior service.

From Australia, Melbourne


Primarily want to inform you that their Gratuity cannot be holded. Even if you hold the same they can legally get it from you ( by filing a case before ACL, Labour Department).

As they submitted proper resignation and served proper notice period you cannot hold their full and final and settlement as well.

At the time of their joining if you had obtained Non disclosure Agreement from them then you may look for some legal remedy for which also you need to prove the loss and also how your company name got spoiled in the Market , before the competent Court, which will be very time consuming and lengthy process.

You cannot blame your employees alone as your Clients were part of this conspiracy.

In this competitive world , especially after Covid many Clients irrespective of nature of business ( IT or Manufacturing sector) learned the art of fishing in troubled waters to gain maximum favour for their business.

You need to restructure your Organisaton with new clients /employees with proper situation in place. Ultimately your quality of work speaks primarily rather than commercial part.

From India, Madras

If You Are Knowledgeable About Any Fact, Resource or Experience Related to This Topic and Want to Be Part of Such Discussions in Future - Please Register and Log In to Cite Community.

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2023 CiteHRŽ

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server