Can My Friend's Settlement Be Withheld Due to a Non-Compete Clause? Seeking Advice!

Dear seniors, My friend worked in a manufacturing concern, and he has not received his settlement after his resignation. He served for 8 years. While joining, no conditions were made, and after 5 years, they issued an order that he should not work in the same field of the company after resigning. Now he is working in a similar industry.

Question on Settlement and Non-Compete Clause

My question is, can they hold his settlement because of this reason? How should we proceed further?

Thank you.

Contractual Obligations and Final Settlement

If he has signed any contract, affidavit, or undertaking stating that he will not work in a similar company after resigning from this industry, then he has done wrong by taking a job in a similar company. However, the company does not have the right to withhold his final settlement dues unless there is a clause in the agreement allowing for this.

If there is no agreement or undertaking signed by the employee, an Office Order may not have legal standing to be used against the employee. In such a case, the company must return the employee's final dues to him, and he should claim them accordingly.