Legal Tip of the Day
Poaching of Employees - Cannot be Checked
We cannot restrain our employees from joining a competitor. The freedom to change employment to improve service conditions is a vital and important right of an employee that cannot be restricted or curtailed.
The negative covenant clause in service and employment contracts cannot be used against an employee. No restraint can be imposed on any employee after they have left the job or been terminated as it goes against the very essence of Section 27 of the Contract Act.
In a case, the Delhi High Court clarified that such contracts are unenforceable, void, and against public policy. What is prohibited by law cannot be permitted by courts. An employer, such as a bank, cannot use confidentiality as an excuse to force an employee to stay with them on the grounds that the employee had access to and possessed confidential information and business data during employment. The court rightly rejected the bank's application, stating that there was neither a prima facie case built by the bank nor any established balance of convenience or irreparable injury to justify granting an injunction against the employee quitting employment.
Regards,
Deepak Miglani
Legal Point Foundation
09215514435
For any queries: deepakmiglani@hotmail.com
Website: www.legalpoint.in
Personal Website: www.deepakmiglani.com
Poaching of Employees - Cannot be Checked
We cannot restrain our employees from joining a competitor. The freedom to change employment to improve service conditions is a vital and important right of an employee that cannot be restricted or curtailed.
The negative covenant clause in service and employment contracts cannot be used against an employee. No restraint can be imposed on any employee after they have left the job or been terminated as it goes against the very essence of Section 27 of the Contract Act.
In a case, the Delhi High Court clarified that such contracts are unenforceable, void, and against public policy. What is prohibited by law cannot be permitted by courts. An employer, such as a bank, cannot use confidentiality as an excuse to force an employee to stay with them on the grounds that the employee had access to and possessed confidential information and business data during employment. The court rightly rejected the bank's application, stating that there was neither a prima facie case built by the bank nor any established balance of convenience or irreparable injury to justify granting an injunction against the employee quitting employment.
Regards,
Deepak Miglani
Legal Point Foundation
09215514435
For any queries: deepakmiglani@hotmail.com
Website: www.legalpoint.in
Personal Website: www.deepakmiglani.com