Please give your valuable comments.
BACKGROUND:-An organization enters into a confidentiality agreement with customers. But the company does not have a separate NDA with employees and may face some resistance if a NDA is now initiated with existing employees.
The employees are given an hand-book / manual (a kind of policy manual) at the time of joining. The manual contains a confidentiality clause ( e.g. exclusive customer related information received should not be disclosed even after resignation). The employee signs in duplicates and a signed copy of employment manual is with HR.
THE QUESTION:-Will the he / she be bound by this clause after leaving the company and joins with a competitor? Whether the company can initiate legal action on the basis of this clause?
Please clarify.
Sambasivam
BACKGROUND:-An organization enters into a confidentiality agreement with customers. But the company does not have a separate NDA with employees and may face some resistance if a NDA is now initiated with existing employees.
The employees are given an hand-book / manual (a kind of policy manual) at the time of joining. The manual contains a confidentiality clause ( e.g. exclusive customer related information received should not be disclosed even after resignation). The employee signs in duplicates and a signed copy of employment manual is with HR.
THE QUESTION:-Will the he / she be bound by this clause after leaving the company and joins with a competitor? Whether the company can initiate legal action on the basis of this clause?
Please clarify.
Sambasivam