Can My Company Fire Me for Joining a Competitor? Seeking Advice on Non-Compete Clause

There is one clause in the terms and conditions in the appointment letter at the time of joining:

"Without prejudice to other terms and conditions mentioned herein, it is expressly agreed that you shall not join any other institution/company/organization which is a competitor and/or is involved in similar business for remuneration or otherwise, for a minimum period of two (2) years. Such a two-year period shall be computed from the day you cease to be an employee of our company, either due to your resignation, willful absenteeism, termination, retrenchment, or any other reason whatsoever."

So, my question is, if I joined a competitor, can the company terminate my service for 2 years? What should I do in that situation?

Dear Sunil,

Inclusion of this kind of clause is contrary to the ruling given by the Delhi High Court. To refer to that post and download the details of the ruling, please click the following link: https://www.citehr.com/571397-delhi-...ml#post2321989.

Thanks,

Dinesh Divekar

Without Prejudice

Hello,

The clause is itself unconstitutional - deviating from the right to freedom precisely under Article 19(1)(g).

Regards,
Gajendra Verma