Facing Job Loss Over a Non-Compete Clause: How Can I Fight Back Legally?

I had joined an MNC in the position of Sales Manager. I resigned from my previous employment after 5 years to join another company. My resignation was accepted, I served the notice period of 2 months, and received my final settlement and relieving letter.

Non-Compete Clause Concerns

The new company is not a competitor of my ex-employer (though my ex-employer feels otherwise). There was a non-compete clause signed to this effect that I would not join a competitor (after 20 months of joining employment). This signing was done more under coercion than of my own volition.

Legal Notice and Employment Impact

Over 2 months into my employment, my ex-employer sent a legal notice to me and my current employer's head office overseas. The current employer asked me to resign due to 'personal reasons,' citing they do not want to get into legal hassles in India. I am left high and dry without employment. I am an Engineer with over 24 years of an unblemished record in my professional career.

Seeking Advice on Legal Action

How can I fight now with my previous employer for causing untold suffering and damage to my career and livelihood?

Please obtain your appointment letter from Employer A, including a copy of the NDA, and have it verified by a lawyer. In India, an NDA is not valid. Please ensure to have the clauses mentioned in the letters verified. If a legal notice has been sent, there is a possibility that it has been filed in India. I recommend consulting with a lawyer at your earliest convenience.

Relevant Discussions on Non-Compete Clauses

Here are a few posts on the debate; you will find many more valuable discussions if you search on CiteHR:
[CocoCola case](https://www.citehr.com/423677-non-compete-clause-appointment-letter.html)
[Enforcement of NDA](https://www.citehr.com/121226-enforcement-non-compete-clause-final-settlement.html)

Wishing you all the best!

It is surprising that your MNC has developed cold feet on receiving just a legal notice from your ex-employer, without going into the merit of the matter. "Over 2 months into my employment, my ex-employer has sent a legal notice to me and my current employer's head office overseas. The current employer asked me to resign due to 'personal reasons,' citing they do not want to get into legal hassles in India."

Attribution: https://www.citehr.com/478242-job-lo...#ixzz2muHEc9Zk

Legal Response Strategy

Ideally, your employer should have sent a reply through their legal counsel. However, since it has not been done by them and the notice was sent to you as well, you can send a reply through your own lawyer. Send a strongly-worded reply through your lawyer and mention the infringement of your rights to earn livelihood and to employment. Also, claim the monetary loss you are likely to suffer on account of this. Challenge them that you will pursue this matter in court and make a claim for damages. Do not give in to such blackmail.

Such sadistic and unscrupulous employers should be taught a lesson so that they do not exploit anyone else in the future.

Warm regards.

I second Ms. (Cite Contribution) and others. You need to go through the terms and conditions of your appointment letter (if you have one) with your previous employer first to understand what it says in this regard.

Secondly, I request you to check the legal notice and the stated reasons by your ex-employer clearly for the definition of violation, and whether there was a copy of NDA/NCA agreed/signed by you (or if the appointment letter stated the T&C/Clause in this regard) attached with this legal notice by them or not.

It is really important to understand what a legal notice says or what terms are applicable in this regard. If it is a valid legal notice, there must be an attached copy of your agreed/signed terms and conditions (legal reference to support their case) for not joining a competitor company for a defined/particular period. But if there is nothing like it, you have a chance to fight back or reply to them in the right/good manner.

In other words, if you have not signed an NDA (Non-Disclosure Agreement) and NCA (Non-Compete Agreement) with stated terms for not joining a competitor for a particular/defined period clearly, there is no need to worry about anything. But if you have, you must have been provided with a copy of it by your ex-employer as stated above.

Now it is you who have to share this information which will enable me to help you more. Also, be sure of what you did or if there was nothing wrong at your end.

Note: If possible or if you feel comfortable, I would like to have the details or a copy of the legal notice sent to you by your ex-employer.

Please consult a lawyer. If you are in Bangalore, we can help you identify a good lawyer. To understand and help your case, we need much more information. Anyways, you are on a better footing and can fight this case. If possible, please explain why your new employer is not a competitor to your earlier employer. This may help many members to contribute and assist you. Some may help you with case laws, etc.

Best Regards,
Divakar

As mentioned by Moderators and Super Moderators, I also join them in stating that NDA/NCA is not valid in India. Moreover, in your case, the ex-employer is an Indian company, and your present employer is a foreign company. So legally, you have a strong hold that competition is within the jurisdiction of the region/state/country and not outside.

Please do not worry and convince your present employer to be cool. Also, if you can attach the NDA/NCA duly signed by you, we can provide you with appropriate advice on how to proceed further.

Thanks for your response to my query. Both companies are MNCs with headquarters in Europe. They have sales operations in India. The former company is a manufacturer of only one range of products, but the latter has multiple ranges of products. From what I understand, Section 27 of the Indian Contracts Act cannot prevent an ex-employee from pursuing a legitimate trade or job. I was relieved and then joined this company.

Regards

I sincerely appreciate your inputs and respect the same. As advised by you, I contacted a lawyer last week, and he has responded to the legal notice from my ex-employer with a 4-page rebuke stating why the legal notice is unconscionable, against public policy, against the right to earn a livelihood, illegal, etc. There has been no response from my ex-employer or their lawyer to this reply. Now, my lawyer advises that we should initiate a legal notice from our side and, after a week or so, proceed to file a case in court claiming damages from my ex-employer for the irreparable harm caused due to the legal notice sent by them.

I am currently unemployed, seeking a suitable opening but, in principle, want to fight for my rights, which have been shattered by their dastardly act of revenge and vendetta. Please be informed that my new employer asked me to resign based on the legal notice sent to our company head office in Europe.

Please advise. Also, do not hesitate to ask me any questions you may have.

Warm regards.

I congratulate you on taking the bold step. Few employees have the courage to do so, and that is what emboldens such companies to exploit and cause harm to employees and ex-employees. As you can see, your ex-employer has not responded; that is because perhaps this is the FIRST time they have got a taste of their own medicine!

You have LOST your current job because of your ex-employer's malafide action. This is a FACT. You have a good lawyer who understands this fact and wants to claim damages for this. You must go ahead and file a case against the concerned HR (who are the proverbial black sheep of this noble profession) and the MD/CEO of that company. The legal notice from their lawyer may not contain the names/designation, but it has been sent on their behalf by the lawyer; and as such, they are the concerned/interested parties.

Similar steps by other victims/survivors will force such companies and their inept and inefficient HRs, who only believe in pampering the egos of the company owners, to think several times before unduly harassing employees/ex-employees.

I agree with our Super Moderator Ms. (Cite Contribution)'s comment given above. You should immediately request the current ex-employer for a RE-HIRE along with these facts and documents. If necessary, you may also, in consultation with your lawyer, submit to them an INDEMNITY BOND so that they are assured that you shall take responsibility for any consequences and keep the Company free of any responsibilities. This may TILT THE SCALES in your favor.

I wish you all the best in this CRUSADE for justice for employees/ex-employees, and request you to keep us posted on the developments.

Warm regards.