Legal Action On An Employee Joining S Competitor Company [Thread 523533]

nathrao
Article 19(1)(g) of the Constitution of India confers fundamental rights on the

citizens of India and this Article allows the citizens the right to practice any profession or carry

on any occupation, trade or business subject to reasonable restrictions in public interest. Thus,

any restriction on this fundamental right of any citizen goes against the protection granted

and guaranteed in the Constitution.

Employers in order to retain talent try to twist arms of employees by putting negative covenants-example "You are not allowed to join the competitors firm (i.e. having same product) for at least two years after leaving this company."

To my mind such agreements are void and have no legal effect.

But employees should equally remember that when you leave your employment do it in legal and documented manner.

But I read here so many cases of people abandoning jobs or leaving by sending emails from personal ids and not even acknowledged by HR.

That will be a recipe for trouble.

New employer will also not appreciate such actions.
a_Sagar
We have somewhat similar case wherein one of my friend was asked to sign a self declaration at the time of relieving. The Declaration says that the employee shouldn't join any competitor or start any similar services next few years. This has put him in a fix as he got some similar opportunities which are competition in nature.
Can this pose any trouble to him in future?
Vasudevdeepak
Non Proaching agreements are usually entered by competeing companies which prevents companies from hiring from rival companies. Hence getting into rival companies would not be so easy.
a_Sagar
In such cases if any employee working in some area for 10-15 years will definitely have proficiency in that field. In case he needs to change job, he can't get into a completely different field. That may be difficult depending on his age and economic level. So, in such case it is difficult for anyone to change their job? what would be their fate in case they have an issue with their present jobs?
Meenakshi Excel
need advice, i am working as a HR in a provate limited company, i got an offer from my client, will i join or any legal issues are there?
pls advice
Meenakshi Excel
need advice, i am working as a HR in a private limited company, i got an offer from my client, will i join or any legal issues are there?
pls advice
nathrao
Meenakshi Excel,
There should be no issues.
Please follow all procedures for getting release from your company.
As you are in HR procedure should be well known to you.
Nitin Joglekar
Dear All,
1. Can employer demands affidavit from employee as condition for issuing relieving letter " He /she will not join to companies vendor or competitor after getting relieved for the period of two years.
2. If this is condition of mentioned in appointment letter, and relieving is coming out of contract of employment; is it legal as per contract act ?
3. Can employee go to labor office and file dispute after getting relieved, that this is "unfair labor practice"?
nathrao
Employer cannot demand such affidavits from departing/exiting employee.
There is freedom of employment and he can join competitors or vendors as long has he does not infringe on original company copyrights or patents.
riteshmaity
Your company cannot stop you from joining any company of your choice once your service has ended with previous company. Supreme Court has strictly said that a company cannot bar its employees from joining a competitor company if the employer finds that company more suitable.
Such clause asking an employee not to join any company after cessation of employment is illegal.
I wrote a blog post on the similar issue few days back. You can check it here - https://labourlawhub.com/2016/02/19/...ts-competitor/
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute