Can My Employer Add a Non-Compete Clause After I've Resigned? What Should I Do?

I am resigning from my current organization. My last working day is 22 Oct 2016, but now a new clause is added to my resignation acceptance that "by signing this letter you accept that you are not going to join any business competitor for the next 6 months." Can a company add this type of clause at any point in time? I do not accept this letter and refuse to sign as I am going to join the same line of business with other organizations. Please suggest what to do.

Earlier, I had shared a link about the verdict of the Delhi High Court on the subject above. Click the following link to refer to it: https://www.citehr.com/571397-delhi-...n-compete.html

Going further, the terms and conditions of the appointment cannot be changed at the time of accepting the letter of resignation. The terms and conditions of employment are included in the appointment letter. If the employer wanted to change the conditions of employment, they could have issued a separate letter to the employee. However, this was not done in your case. Therefore, at this stage, first, have a smooth exit from the company. Join the competitor if you wish to. If they send you a lawyer's notice, then you may quote the above ruling by the Delhi High Court.

Thanks,
Dinesh Divekar

Hi!

Don't worry, they did it out of fear that you might disclose all the information to the other company regarding processes and clients. Please make sure to have a smooth transition from your side; then you won't face any kind of difficulty.

Hi Dinesh,

Thanks for your reply. I talked with my HR regarding this, and he told me that if I don't sign this document, they will create problems with my full and final settlement. According to my appointment letter, my notice period is 30 days, which I am already serving, and my salary for the last 45 days is already on hold by the company. Please suggest what to do.

Sh. Dinesh Divakar has rightly mentioned the Delhi High Court judgment where such a condition has been held to be illegal. If they haven't mentioned such a condition in your appointment letter initially, their action at this stage is unjustified and improper. You can obtain a complete copy of the judgment and write to them that if they hold your full and final settlement, you will move to court for relief. You can provide a copy of the judgment for their perusal and action.

Regards, BS Kalsi