Is It Fair or Legal to Require Resignation if a Spouse Joins a Competitor? Seeking Examples and Insights

marise.lobo
Is it legal to make a provision for employees to have to resign if their spouses join a competitor firm? Does anyone know any examples of companies that do this/make a provision for this?

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K.Ravi PART II
Most bakwaas idea I have ever heard, what is the tab to keep on these things, if I tell my spouse is housewife, and she works with competitor forum, then what will you do, tell me and if you cant reply, then BETTER GIVE UP

Revised:

Most bakwaas idea I have ever heard. What is the plan to handle these situations? If I disclose that my spouse is a housewife and she works with a competitor forum, how will you address it? Please let me know. If you are unable to respond, it would be better to give up.
rajnigopal
I have come across cases where if both the spouses are working for competitors in an industry where confidentiality is the key, then in such cases on moral grounds one of them moves to a different account so that there are no vested interests. I guess it finally boils down to one's integrity and commitment to the work. Hope that helped.

Regards
rameshbashyam@yahoo.com
It depends on the perception. Generally, companies and in some cases, the spouses need to make a decision. It is advisable that they do not work in a competitor's place. However, you cannot prevent someone from working under a competitor unless the person involved is handling sensitive information.

Ramesh
White Eagle
Dear Marise Lobo,

It is not advisable to make such a provision. It will be discriminatory. How can you terminate or resign from any person on the grounds that his spouse is working with a competitor? If confidentiality is the issue, then why only target the spouse? Why not consider the father, mother, or brother as well? Who will define competitors? In all industries, every company can be seen as a competitor. For example, if you work at XYZ Insurance Co., all other insurance companies would become your competitor.

It is advisable to avoid implementing these kinds of policies in black and white. Be careful when hiring.

Thank you.
mksharma63
HR has to play an important role here while interviewing the candidate and conducting reference/background checks. We have had a few instances when, during the interview, a deserving candidate, we learned that their spouse is working with a competitor. We were both honest with each other, and we explained to the candidate that despite finding them suitable, we may not select them for this reason. The candidate also accepted this graciously. The good thing is we are still in touch with each other as individuals even today.
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