Facing Legal Trouble Over Non-Compete Clause: What Should I Do Next?

In my previous job, I was given the appointment letter at the time of joining the organization, which had a clause stating that I cannot join a competitor for a period of 2 years after resigning. I had signed this clause upon accepting the job. Upon resigning from my previous job, my relieving letter also reiterated the restriction on joining a competitor for a 2-year period.

Following a one-month gap, I received an offer from another organization in the same industry, and I accepted the offer. Subsequently, I have received a legal notice from my former employer claiming a breach of contract. They are demanding compensation for loss of goodwill and business and have accused me of violating sections 415, 418, and 420 of the IPC.

I seek guidance on the appropriate steps to take next. Any assistance provided would be greatly appreciated.

Thank you.

Dear friend,

Please check my following post: https://www.citehr.com/571397-delhi-...n-compete.html

Thanks,
Dinesh Divekar

Thank you for your message.

Thanks Divakar,

Please advise if I need to pay any heed to the advocate's notice, or approach for legal counsel given the sections 415, 418 & 420 mentioned in the notice.

Thank you

I am from Pakistan. In Pakistan, some employers do engage in such practices, sending legal notices, and some even resort to filing damages cases in court. The opinion of legal experts is that such cases can take more than 10 to 15 years to resolve and raise various legal questions as outlined below:

Legal Concerns with Restrictive Clauses

1. As per the Constitution of our country, forced labor and slavery are prohibited.

2. If an employee is not assigned relevant work according to their technical skills and experience, how will they manage during periods of joblessness? How will they cover their living expenses or sustain their livelihood? Clauses of this nature are illegal and push employees to live hand-to-mouth.

For instance, if a doctor is working in a hospital and, as per the contract terms, is restricted from joining another hospital or practicing elsewhere, what should the doctor do upon resignation? Should they discard their medical degree or abandon their profession? Such clauses are deemed illegal and unconstitutional, reflecting the employer's tyrannical and malicious intent.

3. If the employer offers future compensation in exchange for such restrictive clauses, it might be considered to some extent; otherwise, it remains unjustifiable.

Therefore, do not be concerned. Respond to the legal notice as indicated above.

Regards,
Asif Amin

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