Wrongfully Terminated and Threatened: How Can I Protect My Future Career?

Hi, I was working in an organization for the past 4 years, which recently terminated me for a confidentiality breach that I never committed. I never shared the company’s intellectual property or any internal information. I was issued a termination letter, which they forcefully made me sign. Now they have sent me a resignation acceptance email and an experience letter, which is pretty neutral. However, for the relieving letter, they have asked me to sign a non-compete clause and a non-solicitation clause (without any timelines, which makes it forever), which was not a part of my joining/offer letter.

I tried getting in touch with HR to resolve this, and when he wasn’t replying, I copied the senior directors. The only change he is making now is not putting those clauses on the relieving letter but making me sign them separately. He also threatened me that if I bother him or the seniors again, he will send an email to wherever I join, telling them that I breached confidentiality and will destroy my career.

What should I do to deal with this situation? I would request all the seniors here to help me with their suggestions.

Position in Previous Company

The poster has not mentioned the position he held in the previous company. It may, therefore, lead to some reasonable inference that his job with the said company was of either a supervisory or managerial nature only.

Non-Compete and Non-Solicitation Agreements

Non-compete and non-solicitation agreements, or bonds, are made only to protect the business interests of an employer against the ex-employee's act of starting the same business on his own or joining the services of a competitor to garner the ex-employee's clientele. Therefore, their enforceability depends on the extent of the restrictions imposed therein with reference to the time and geography mentioned therein. In addition, the non-compete bond, if signed by the employee after the termination of the contract of employment with the employer, should have some element of consideration to the employee in return.

Termination of Employment

Moreover, as per the revised relieving letter issued, the poster's termination of employment was only on account of his resignation duly accepted by the previous employer. Since the so-called bonds are not time-specific, the ex-employer cannot successfully enforce it against the poster if he starts his own business or joins another company in the same field of business.

Such a move may be a mere act of threat to discourage the exit of experienced employees. Here, it is also pertinent to note that Section 23 of the Indian Contract Act, 1872, declares a contract with such unreasonable restrictive clauses as opposed to public policy and renders it invalid. Therefore, my view is that the poster can simply ignore this and move on with his career peacefully according to his own choice.

"Terminated me for a confidentiality breach which I never did."

You should have forcefully addressed the matter of being blamed for a serious issue that you state you were never involved in. As a learned member has advised, the non-compete clause and non-solicitation clause cannot be for indefinite periods. Preserve all correspondence with this employer safely, as it can be helpful if something ever happens. HR has shown a negative attitude, and you need to keep your evidence safe in hard copy form. This is a learning experience, and one should move on.

Umakanthan53 and Nathrao, I truly appreciate your valuable inputs. My position was also quite junior, not even that of a team lead. Also, I still haven’t signed the clauses, but I need to do so in order to get my relieving letter. Should I sign them to ensure they do not ruin my background verification if my future employer gets in touch with them? Also, is there a way they can send me a legal notice for not following the clauses? This was my first job ever, and it has made things really disturbing for me. Any suggestions will be greatly appreciated.

Also, can they send me any legal notice for confidentiality breach after giving me the resignation acceptance and experience letter? I have not breached anything but can they dig really deep to find any minor thing at all which might be considered as a breach? I am only saying this due to the nature of the HR and seniors in the organization as they already threatened me.

Would this make things complicated for me to get a new job?

It seems you are taking their threat too seriously. To counter these threats, please adopt a positive and honest approach. Inform the HR of the new company honestly about what has transpired in your last company and show them all relevant documents. I am sure your honesty will be appreciated, and even if your old employer emails your new employer about the incident, its effect will be nullified. You already have received your experience letter, so why bother about the relieving letter? Just go ahead with confidence and kick-start your new career.

Regards, R. H. Kavarana HR Manager Mumbai.

From your descriptions in the successive posts, the company does not seem to be an ideal place of employment. Therefore, no sensible employee would prefer to stay there for the sake of mere subsistence. The company's decision to send you out under the pretext of resignation, in fact, seems to me a blessing in disguise for you. Handle the situation very tactfully. If your employment details furnished by you are true and correct, you need not bother about signing the bonds with the restrictive covenants now to avoid any negative feedback likely to be given by the company in response to any B.G.V relating to your future placement because such one-sided agreements against public policy are ab initio void. Hesitation prompted by unfounded fear would be a stumbling block in the decision-making process.

Thank you both. I am sorry for stretching it a bit here.

Can you also comment on the possibility of them taking legal action based on a confidentiality breach? I mean, I have heard that these companies have all the resources to investigate thoroughly and potentially sue someone even for a minor issue.

Once your resignation is duly accepted and you are formally relieved, the management cannot bring up the issue of confidence regarding the past period.

Thanks a lot for all your help!
So now should I sign the bond since it is not enforceable in court or should I just forget about releaving letter?
Since, they have issued the experience letter and resignation acceptance they can not rack up the previous confidentiality issue, right? Or do I still need to get the releaving letter to get rid of this issue.
If I have to get the releaving letter I'll have to sign the clauses.
So should I now sign it or just let it be?

Apart from the valuable inputs from learned friends, I would suggest you obtain your relieving letter. This would absolve you of any future negative feedback by the company during background verification by prospective employers. The relieving letter will release you from your contractual obligations with the company, preventing them from taking any legal action in the future. Once you have been relieved, the contractual relationship will come to an end.

Instead of sending a legal notice, you can file a formal complaint detailing the situation to the Deputy Commissioner of Labour. This will lead to conciliation, and you may obtain your relieving letter through this mediation. If the company fails to comply, any discrepancies will be exposed.

Termination Process and Employee Rights

Termination is a vast subject, and an employer cannot terminate you overnight. They need to follow all the proceedings, such as a Suspension Letter, Charge Sheet, Domestic Inquiry, Inquiry Report, and Evidence. It is a time-consuming process. No employer can terminate you without any prior notice period unless the crime is so grave as per your Certified Standing Orders and Terms & Conditions of the Appointment Letter (accepted by you). The employer needs to prove it, even if you have actually done it.

If they have asked you to resign forcefully, you can't do much because you can't prove it in court as it is written evidence and you can't challenge it. Since it is written by your hand and may contain your signature or if sent by your mail, the company can prove it was done by you.

Impact on Future Employment

Now comes the point of whether it may affect your future employment. It will not affect you unless it is specified in the relieving letter about your termination. Try to get a job as soon as possible, as a delay may lead to several questions in the mind of the next employer.

Challenging Termination in Labour Court

If you challenge them in the Labour Court, this may lead to harassment for you. You may be required to be present in court for your rights, provided you have all the evidence that your termination is wrong. If your next employer comes to know about such action, they may not hire you, depending upon the understanding of the next employer and your convincing.

A sincere apology for using hard words in between, but it's the truth.

Best wishes for your future, and in case you need any help, you can mail me anytime. I would be happy to help you.

Confidentiality Breach and Wrongful Termination

A confidentiality breach is generally taken very seriously by a company. If you haven't made any mistakes, this comes under wrongful termination. Moreover, HR behavior seems very unprofessional. Any non-compete or non-solicitation agreement must have a time frame. They cannot hold you against it indefinitely. Since you are getting your relieving letter without those clauses, it shouldn't pose a problem for you.

You can ignore these 'threats' and join a new organization.

Click on the "+" sign for more helpful answers like these.

Regards, Sairam Bandi

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