pooja.kssingh
1

NON-COMPETE CLAUSE IN EMPLOYMENT AGREEMENTS IN INDIA :

Hi All - This is with ref to the Non Compete clause in employment agreement : If there is a clause and post this also if the employee leaves the organisation and joins the competition - what are the possible deterrents "employer' can have to stop or restrict the employee from leaving the organisation. (While I am fully aware that this is prohibited by court of law - my question is what can an employer do to stop the employees from going to the competition)..

From United States
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Dinesh Divekar
Business Mentor, Consultant And Trainer
Vmlakshminarayanan
Sr.manager - Hr&admin
Raghunath Sabat
Digital Marketing Executive
Nathrao
Insolvency N Gst Professional
Srinath Sai Ram
Hr Manager
Twishika Agarwal
Hr Executive
+1 Other

Dinesh Divekar
7699

Dear Ms Pooja K Singh,

Legal remedies are not available to restrain employees from joining a competition. You may click the following link to refer to the ruling by the Delhi High Court:

https://www.citehr.com/571397-delhi-...n-compete.html

In the recent past, the famous editor of WION, Ms Palki Sharma Upadhyay was restrained by her employer, Zee TV Network to join the competition. Again Delhi High Court set aside the restraint imposed by Zee TV. Click the following link to refer to the news:

https://www.newslaundry.com/2022/11/...join-network18

Thanks,

Dinesh Divekar

From India, Bangalore
pooja.kssingh
1

Thank you Dinesh - what my query is that though an employer is not talking about post leaving but while the employee is working with us what measures can be taken by employer to make it difficult for employee to think of leaving and joining the competition.
From United States
vmlakshminarayanan
517

Hi,

The possible move from the employer are

1) holding /delaying the relieving letter/ full and final settlement
2) sending the employee some legal notice to harass the individual primarily.. like you have not completed the work, you took some important client data, your unauthorized leave from the office had resulted to loss to the company etc..
3) serving some official communication to the competitor that the employee is not relieved officially.
4) sharing negative comments during BGV if any.

From India, Madras
pooja.kssingh
1

Thank you V.M.Lakshminarayanan this is something I was looking for as an insight ..
One more suggestion required - these are all post leaving during the tenure what all can be done..Thank you for your help

From United States
Dinesh Divekar
7699

Dear Mr V.M.Lakshminarayanan,

You have given a list of the counts on which an employee can be harassed. Well, gentleman, we the members of this forum must see the situation dispassionately and we should treat the member of this forum and the employee in question equally. Just because an HR professional has approached this forum does not mean that we should suggest something that could do injustice against the employee.

Your suggestions are against the principles of rationality. The ease with which you have suggested giving negative comments in BGV is shocking. What will you achieve by destroying someone's career?

I have seen even paid consultants refusing to give unfair suggestions to their clients. We the members of this forum cannot be biased towards a fellow member or an employee working in his/her company. Therefore, stand for justice and fair play.

For Ms Pooja K Singh: - Employee retention is always a challenge to HR professionals who live with the principles of HR Management. Employee retention depends on employee engagement. Create a career path for an employee so that he/she can grow. Secondly, you must have read about "self-actualisation needs" in Maslow's Hierarchy of Needs. Try fulfilling the self-actualising needs of the employee.

Thanks,

Dinesh Divekar

From India, Bangalore
pooja.kssingh
1

Dear Dinesh,

Appreciate your response and revert on this sensitive topic ; I myself will NOT go and opt for any of the measures which we have discussed. I am just trying to see what are the deterrents which can be opted for by the employers (You must also recognise the fact that I can even not think of the deterrents as I am so employee friendly). While trying to explore Non Compete clause in totality was just reviewing what can employers do ? hence this querry.

Thank you for you inputs both Mr Dinesh and Mr V.M.Lakshminarayanan

Best Regards,
Pooja Singh

From United States
vmlakshminarayanan
517

Dear Mr. Dinesh,


The question of Ms.Pooja.Kssingh is " what are the possible deterrents "employer' can have to stop or restrict the employee from leaving the organisation " I have just listed the "possible move of the employer" in such a scenario who have invested crores of money for their business. No where in my post I have mentioned such moves are right or wrong or no where in my post I have provoked her to follow it. Obviously employer cannot initiate unfair practice without any proper proof in place and even the employee will defend such moves legally.

I have come across such similar scenario wherein Senior level employees formed a new Company itself after having a secret deal with the Client of the Employer and Employer was not able to do anything as they came to know about that very late after those employees got relieved officially. Nowadays even employees are acting very smart.

I have been working in HR for the past 26+ years in different sectors like hospitality, construction, BPO etc. Whatever I'm sharing here is my thoughts (many I gained knowledge through my practical experience) on the discussion topic. It is up to the Member whether to take or leave it.

Ms.Pooja.Kssingh : What you can do during the tenure of the employment is maximum you can assure the employee with some better compensation / position and counsel him how your company is superior than competitor's company, future business plans, volume of projects in pipeline etc. You can also subtly caution him about Non Compete clause.

From India, Madras
nathrao
3122

The best deterrent for stopping employees from quitting is that employer should treat employee fairly, giving opportunity to learn and advance while working for the company.Deterrent is a wrong term in this post).It should be a part of work culture of respecting the employee, while getting desired output.
Negative measures are many but should never be adopted.
Eventually if some one wants to quit after completing his obligations,let him go happily and in timely manner.Exit interview will give the company feedback on reasons for exit.The point is an employee may not exit because of the company alone.he may have other reasons also.So be receptive and prompt to relieve employees who want to go,but try and honestly otain genuine feedback.

From India, Pune
Srinath Sai Ram
606

Dear Ms Pooja,
Can you Please Clarify what is a Employment Agreement, What are the Terms & Conditions of Agreement?
Employee Joins the Competition? Can you initiate any action against the Employer who has Recruited the Employee?
Your query is not based on Facts, merely on apprehension.Employees can leave the Services as per the Terms & Conditions of Appointment/Agreement.
"Grass is Greener on the other side.Bonded Labour is prohibited."
Hypothetical questions can get only Hypothetical answers"

From India, New Delhi

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views.








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