Non-Compete Dilemma: Can My Former Employer Sue Me for Joining a Competitor?

I signed a non-compete agreement with my previous company two years ago. Now, they have forced me to resign due to market crises. The agreement clearly states that I am prohibited from joining any competitors. However, due to the current market conditions, I have accepted a position with a competitor. Can my former company take legal action against me?

When did you join the company and when did you leave? What capacity did you serve the company? Please post the bond on the forum (with personal details masked) to read and then comment. As long as you are not divulging trade secrets of your ex-employer, there may not be a problem. But members can comment only if more details are given - wording of the bond, nature of present work, etc.

Understanding the Legality of Employment Bonds and Non-Compete Agreements

First, a bond is illegal, and at most, through a bond, a company can only recover the amount spent on the training of an employee. Forcing you to resign is illegal, and you can take legal action. If there is a lack of job or financial crunch, then your company can remove you from your service through the method of retrenchment, and in that case, you are entitled to retrenchment compensation.

Lastly, no employer can stop you from joining a competitor company even through a bond, as per the Supreme Court. I have a specific blog post on this issue - https://labourlawhub.com/2016/02/19/...ts-competitor/. Check my blog at www.labourlawhub.com

Regards

Bonded labor was abolished long ago. Resignation is an act of will, and no employer can force you to resign. There is a case of Pepsi vs. Coke in which the Honorable Supreme Court has held that every Indian has a constitutional right to work in any company in India. You don't need to worry.

Please let me know if you need further assistance.