Facing a Non-Compete Dilemma: Can My Former Employer Accuse Me of Data Theft?

Dear senior members,

I have a query regarding a non-compete clause. It basically states that I can't work for 10 years worldwide for any competing business. However, there is no clear definition of a competing business in the contract I signed.

The company promised training but failed to provide it. Additionally, the company required us to sign a 10 lakh indemnity bond. Some members received training while others did not.

Furthermore, the contract promised a salary hike every year. Unfortunately, due to my manager's actions, the first-year hike was delayed by 6 months, the second-year hike by 10 months, and no hikes were given in the 4th and 5th years. In fact, they reduced pay and have yet to pay back the arrears.

I have submitted my resignation, which the management verbally accepted but did not process any paperwork. My manager even threatened physical violence when I resigned. Previously, I worked in R&D, but for the last 4 months, I have been in marketing. I have handed over all confidential data from my previous role.

If I breach the non-compete clause, what actions can the company take? Can they falsely accuse me of data theft? Your advice is appreciated.

Non-compete clause enforcement

A non-compete clause is easy to get signed by the employee, but not so easy to implement. In the wide world, will it be possible to chase every resigned employee and enforce the clause? However, there are certain industry associations, and the member organizations have formal or informal agreements not to poach each other's employees and also discourage such lateral movements. In case the new organization you are opting to join has such agreements, then it may cause problems later. Otherwise, knowing the lax way the litigations progress and end up here, you can be optimistic that nothing adverse is likely to happen.

Data theft concerns

Data theft cannot be made of the information that is already in the public domain or what is available to all. To accuse you of data theft, there has to be some data that they have marked as confidential, which has been made use of by you post-termination of service.