Can My Employer Legally Restrict Me from Working Elsewhere After Resigning?

According to my offer letter from my employer, my notice period is 3 months. If I want to leave without giving a 3-month notice, already 10 days' salary has been paid to my employer as per our settlement. But now, he wants me to sign on some stamp paper for an R and E certificate. According to the stamp paper, he said, "Don't work with any other company engaged in similar businesses for 24 months from relieving." I have no need for an R & E certificate for the next job.

If at all any condition was not stipulated during the appointment or later, do not proceed with actions such as signing stamp papers, etc.

You are asking if you can join a new organization without a relieving letter. Are there any chances that your old organization will object to your joining a new organization after you leave?

It is important to consider the policies and agreements you have with your current employer before making a decision to join a new organization without a relieving letter.

It depends on your new organization to accept you without a relieving order from the previous organization. The previous organization has every right to object to your joining the new organization without completing all the formalities.

Joining a similar business

Are you going to work with any other company engaged in similar businesses? If so, they can take up the issue with the industry body.

Joining a different line of business

However, if you are joining a totally different line of business, then you need not have any issue in signing the covenant for non-employment with competitors for 24 months.

Dear Pankaj,

Your employer is taking advantage of the employees' situation. Why does an employee keep his ten days' salary with the employer? If it was not stipulated earlier about the signing of stamp papers, why now? The clause mentioned to not engage in a similar company is also not acceptable. If you do not need the R&E, just leave the company by serving the due notice period.

Yes, please.

It is too much on the part of management. Is it a business secret formula like Coca-Cola's company? Don't give any signature on any bond paper to any company throughout your career, sir. Once any company asks for bond paper signatures from its employees, it shows that it is a litigant-prone company, fond of going to court against its own employees.