Hi Everyone, I was working in a company where I signed a Mutual NDA (when I was a student in college) before joining that company. It was mentioned that the agreement would be valid for 3 years. I resigned from that company in October last year and had to serve a notice period of 2 months. After that, I joined a new company in January this year. The new company is a competitor in only one field, whereas the previous company worked in multiple fields.
Since I was inexperienced with resigning, I informed the management truthfully that I had another opportunity and wanted to resign. After resigning, the management team pressured and harassed me not to join the new company. They presented me with a new non-compete bond to sign and warned that my relieving process would not go smoothly if I did not sign. I refused to sign anything at that moment and was honest about my intentions to join the new company. They even informed the new company not to hire me, threatening to make a big issue. Despite this, I completed the 2-month notice period and resigned.
Regarding the relieving letter
It contains unnecessary clauses. The content is as follows:
"This is to certify that my name has worked with us as [designation] from [tenure].
He has been relieved from his duties as of the last working day.
Please note that all clauses and terms regarding non-disclosure, non-compete, and non-solicitation as accepted and signed by him in the offer letter are applicable even after his exit for a period of 12 months, and any breach of the same will lead to potential legal consequences. We request him to continue adhering to the related policies and clauses.
His contributions to the organization and its success will always be appreciated.
We wish him all the best in his future endeavors.
[HR Manager's Name and Signature]"
My queries are
1.) Will this relieving letter be fine for me in the future?
2.) Will this letter (with clauses) affect me in taking loans, visa processes, higher studies, etc.?
PS: I have the last 3 months' salary slips, appointment letter, bank statement of the salary account, Form-16, and ITR for 2 years.
Your reply would really help me. Looking forward to your response. Thank you for reading.
From India, Bengaluru
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Since I was inexperienced with resigning, I informed the management truthfully that I had another opportunity and wanted to resign. After resigning, the management team pressured and harassed me not to join the new company. They presented me with a new non-compete bond to sign and warned that my relieving process would not go smoothly if I did not sign. I refused to sign anything at that moment and was honest about my intentions to join the new company. They even informed the new company not to hire me, threatening to make a big issue. Despite this, I completed the 2-month notice period and resigned.
Regarding the relieving letter
It contains unnecessary clauses. The content is as follows:
"This is to certify that my name has worked with us as [designation] from [tenure].
He has been relieved from his duties as of the last working day.
Please note that all clauses and terms regarding non-disclosure, non-compete, and non-solicitation as accepted and signed by him in the offer letter are applicable even after his exit for a period of 12 months, and any breach of the same will lead to potential legal consequences. We request him to continue adhering to the related policies and clauses.
His contributions to the organization and its success will always be appreciated.
We wish him all the best in his future endeavors.
[HR Manager's Name and Signature]"
My queries are
1.) Will this relieving letter be fine for me in the future?
2.) Will this letter (with clauses) affect me in taking loans, visa processes, higher studies, etc.?
PS: I have the last 3 months' salary slips, appointment letter, bank statement of the salary account, Form-16, and ITR for 2 years.
Your reply would really help me. Looking forward to your response. Thank you for reading.
From India, Bengaluru
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Validity of Non-Compete Clauses in India
In general, a Non-Compete clause for an employee is not valid in India. Therefore, the action of your employer is not legally enforceable. They cannot prevent you from joining a competitor or force you to continue working with them, regardless of any agreement you may have signed. At best, they can recover training costs under certain circumstances. However, you need to be careful not to disclose business secrets to your new employer because that clause of the NDA is valid. This does not mean you cannot use your knowledge, but you need to be clear on what constitutes confidential information of the previous employer and ensure you do not disclose that.
Leaving on Good Terms
It is generally a good idea to leave on good terms with the employer. However, if that is not possible, be prepared for the consequences. When a new employer conducts a background verification (BGV), the previous company might give a negative comment. Therefore, for any new job you take, ensure that HR is informed well in advance about the problems you had with that particular employer.
From India, Mumbai
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2508In general, a Non-Compete clause for an employee is not valid in India. Therefore, the action of your employer is not legally enforceable. They cannot prevent you from joining a competitor or force you to continue working with them, regardless of any agreement you may have signed. At best, they can recover training costs under certain circumstances. However, you need to be careful not to disclose business secrets to your new employer because that clause of the NDA is valid. This does not mean you cannot use your knowledge, but you need to be clear on what constitutes confidential information of the previous employer and ensure you do not disclose that.
Leaving on Good Terms
It is generally a good idea to leave on good terms with the employer. However, if that is not possible, be prepared for the consequences. When a new employer conducts a background verification (BGV), the previous company might give a negative comment. Therefore, for any new job you take, ensure that HR is informed well in advance about the problems you had with that particular employer.
From India, Mumbai
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Resignation cum relieving letter.doc