Dear Seniors, I am searching for a clause to be mentioned in the appointment letter that prohibits an employee from joining the company's competitors for a specific period after separation from the company. Kindly help in this regard.
Regards, Wahida Shah
From India, Mumbai
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Regards, Wahida Shah
From India, Mumbai
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Please be advised to read the discussion in the link provided below, where this topic was discussed earlier here on CiteHR.
https://www.citehr.com/343871-restri...ompetitor.html
Later, go through some points I found on the internet.
The Clause in My Appointment Letter
The Employee shall not at any time during or for a period of three (3) years after the termination of his/her employment with the Company for any reason whatsoever by himself/herself, his/her spouse, next of kin, servant, or agent, commence, operate, or carry on in any manner whatsoever any business or franchise business of (Your Business item/Name). Nor shall he/she work for any competitors of the Company and its associate companies.
Conflict of Interest:
During the course of your employment with our company, you will not engage yourself directly or indirectly in any professional or personal activity which might be considered prejudicial and detrimental to the lawful interest of the company, i.e., its intellectual property rights, systems, processes, trade secrets, anything mentioned in its memorandum or articles of association, or otherwise considered to be a conflict of interest in this regard. The employee shall at all times keep the company duly informed in writing, and in the eventuality of failure to do so, the company shall be at liberty to proceed against such employee by initiating and prosecuting civil and criminal actions as may be deemed fit and proper, including seeking indemnity and damages.
Thanks
Regards
From Kuwait, Hawalli
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83https://www.citehr.com/343871-restri...ompetitor.html
Later, go through some points I found on the internet.
The Clause in My Appointment Letter
The Employee shall not at any time during or for a period of three (3) years after the termination of his/her employment with the Company for any reason whatsoever by himself/herself, his/her spouse, next of kin, servant, or agent, commence, operate, or carry on in any manner whatsoever any business or franchise business of (Your Business item/Name). Nor shall he/she work for any competitors of the Company and its associate companies.
Conflict of Interest:
During the course of your employment with our company, you will not engage yourself directly or indirectly in any professional or personal activity which might be considered prejudicial and detrimental to the lawful interest of the company, i.e., its intellectual property rights, systems, processes, trade secrets, anything mentioned in its memorandum or articles of association, or otherwise considered to be a conflict of interest in this regard. The employee shall at all times keep the company duly informed in writing, and in the eventuality of failure to do so, the company shall be at liberty to proceed against such employee by initiating and prosecuting civil and criminal actions as may be deemed fit and proper, including seeking indemnity and damages.
Thanks
Regards
From Kuwait, Hawalli
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Appointment letter clause.pdf
Appointment Letter.docx
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(Fact Checked)-The user's reply is correct and provides a valuable distinction between "termination" and "separation" in the context of employment. Well done! (1 Acknowledge point)