Navigating Job Interviews with Restrictive Clauses: How to Resign Gracefully?

Respected Experts,

I want to know if a person is working at ABC Company with an appointment letter clause stating that he/she should inform the employer before attending an interview at another company. However, if he/she informs them, they will not allow it. So, if the person appears in the interview and is selected by the new company, how should he/she submit the resignation? Since the person did not adhere to the clause in the appointment letter.

Exiting Amicably from the Company

Secondly, how can one exit amicably from the company? Should he/she cite new opportunities and personal growth as reasons for resignation?

Your responses are highly valuable and greatly appreciated. Thank you in advance.

Attending Interviews and Employment Terms

Attending an interview elsewhere is in breach of the appointment letter and employment terms, as accepted by the employee, so the employee is bound by it. Disclosing the real grounds of resignation would not work in your favor in this matter. However, are there any other options that are ethical and legal? Please ascertain what was done in such cases earlier. But this does not mean that an employee can be compelled to serve the company, as there cannot be any compulsory employment. The action provided for violating the condition (such as refusal to accept resignation and thereby denying certain terminal benefits, etc.) is possible.

Concerns About Interview Clause in Appointment Letters

Inserting a clause in the appointment letter stating that if the employee wants to appear for an interview, he/she should take permission is just ridiculous. Why does the current employer want to insert this clause? Typically, when an employee resigns, he/she is required to give a sufficient notice period. The clause about the notice period is always included in the appointment letter. The question arises: why does the employer want to add this new clause that could potentially hinder the future growth of the employee?

I recommend applying for other jobs, and when resigning from the current company, simply state that you wish to start your own business. Alternatively, you may approach the Labor Officer to have this clause removed from the appointment letter.

Thanks,

Dinesh Divekar

Dear KKHR,

"Attending an interview elsewhere is in breach of the appointment letter and employment terms, and since it was accepted by the employee, they are bound by it."

Such a clause will not hold water in a court of law. The mobility of labor cannot be denied by such clauses. Some may sign out of compulsion.

Thank you.

Legal implications of restrictive clauses in employment contracts

Strongly agree with the comment that "Such a clause will not hold water in a court of law. Mobility of labor cannot be denied by such clauses. Out of compulsion, some may sign it." This position is reflected in the comment that "But this does not mean that an employee can be compelled to serve the company as there cannot be any compulsive employment."

The submission on this point is that though there is a breach of appointment terms, yet the employer cannot forcefully retain an employee in service against their will, and such terms will not stand judicial scrutiny.

Employee Awareness and Opportunities

If management or ownership becomes aware that an employee is exploring other options, it provides them with an opportunity to determine whether they can negotiate with the current employee on terms, salary, and mutual growth. Employers are not obligated to deny employees opportunities for growth, either within the company or externally. It also allows the employer to safeguard the company's important data that may be with the employee, in case they consider interviewing with a potential competitor.

It is not implied here that employees are prohibited from interviewing elsewhere. However, such an understanding should be mutual and not necessarily outlined in a written format within an appointment letter.

Open Communication and Growth

In my view, I would recommend that employees establish open communication with management or ownership and seek growth opportunities within the current organization as much as possible before considering a job change. Constructive feedback from employers should be viewed as an opportunity for improvement rather than as a negative critique. Once you have demonstrated that you have maximized all potential growth avenues within your current company, they may be more open to you exploring other opportunities.