Can We Enforce a New NDA Restricting Employees from Joining Competitors Midway? How Should We Handle This?

Our organization provides online services and knowledge services catering to a particular industry. We are introducing a Non-Disclosure Agreement (NDA) policy for both existing employees and new joiners. In this policy, there is a clause stating that individuals cannot join a similar kind of company serving the same industry as us.

This change is not being received positively since it is being introduced midway. Can an organization enforce such a policy after the fact? If not, how should we approach this situation?

It is not that you cannot introduce such a policy in between; it depends on the situation or demand of the company. Yes, it may be difficult for the employee, but it completely depends on how you represent it. Take it in a positive way.

Best of luck.

It's easy to implement policies and procedures, and they should be effectively addressed for business-making and employee culture. When discussing the NDA, it's mandatory to safeguard every company's information.

While you have cited the pros and cons of your company's policies and procedures, have you also mentioned that the company norms can be tailored or customized at the management's discretion? If you've addressed this point, you may fit it into your communication and send an email to all employees or a circular to the HODs to inform their respective teammates.

In the other case, if you haven't mentioned this point, talk to your management and the HODs for appropriate action. Send out a circular and also collect signatures to ensure that each staff member has read and understood the policies, or print the policy documents [signed by HR] and place them on employee workstations (most effective way).

Regards

To the best of my knowledge, any restriction on employment in a bond or NDA is illegal and invalid. A restriction on joining a competitor is valid only for a limited period in case a proprietor is selling their business; this is essentially a non-compete clause that does not apply to employees.

In effect, the NDA you are designing has no value. Do you expect that an employee is going to sacrifice their career to work for you? Even new employees will refuse to join you and will instead opt to work for someone else. The only reason a fresher is willing to work for you is to gain experience so that they can excel in their career. You are stating that the experience is useless as they can't join anyone else in the same industry.

I agree with Mr. Banerjee. Any restriction on employment in a bond or NDA is illegal and invalid. Restriction on joining a competitor is valid only for a limited period, and it also depends upon which type of business/industry you are in. That is actually a non-compete clause. It does not apply to employees.

In effect, the NDA you are designing has no value. Do you expect that an employee is going to sacrifice his career to work for you? Even new employees will refuse to join you and will instead go work for someone else.

Also, you will lose your honest/faithful employees who are working with you. They will think that the company/management does not trust them anymore, which will also spread a wrong message and create a wrong picture/image in the market.

Today, if it is very hard to find a good job, then it is also difficult to find the right candidate or good person/employee who matches the requirements of the company. In this scenario, or with such types of policies/restrictions, there is a chance of losing our honest/faithful employees. Moreover, one should think of introducing such policies where employees should feel comfortable at the workplace. For example, I have heard somewhere that there are companies that do not allow access to or reading of personal mail in the office. They have put some "FORTIGUARD" which does not allow you to go to any ads related to jobs or opportunities. My personal view is that this type of policy encourages more loss of good employees. If somebody wants to go, they will go anyway; you cannot stop them. But somebody who really wishes to work long-term and wants to make their career with the same company will even start thinking of going to some other opportunity.

Secondly, the only reason a fresher is willing to work for you is to gain experience so that he can do well in his career.

Regards,
BABUDADA.