Hi,
My appointment letter states that I cannot join a competitor company for a period of 2 years after leaving my current company. I have not signed any legal document with my current company. I have received a good offer from a competitor company. If I join this company, can my current company sue me based on my appointment letter?
Regards
From India, Thana
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My appointment letter states that I cannot join a competitor company for a period of 2 years after leaving my current company. I have not signed any legal document with my current company. I have received a good offer from a competitor company. If I join this company, can my current company sue me based on my appointment letter?
Regards
From India, Thana
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Dear,
You can join another company. The clause given in the appointment letter is not correct. For example, if I am working as a chemist in a pharmaceutical company and I leave to join another pharmaceutical company, the clause stating that I should not work anywhere for two years after leaving the present company is absurd.
As per the Indian Contract Act, 1972, Section 27, this agreement in the form of the appointment letter is void. Section 27 states that every agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is, to that extent, void.
Regards,
JS Malik
"Hi, My appointment letter states that I cannot join a competitor company for a period of 2 years after leaving my current company. I have not signed any legal document with my current company. I have received a good offer from a competitor company. If I join this company, can my current company sue me based on my appointment letter?
Regards"
From India, Delhi
Acknowledge(0)Amend(0)
174You can join another company. The clause given in the appointment letter is not correct. For example, if I am working as a chemist in a pharmaceutical company and I leave to join another pharmaceutical company, the clause stating that I should not work anywhere for two years after leaving the present company is absurd.
As per the Indian Contract Act, 1972, Section 27, this agreement in the form of the appointment letter is void. Section 27 states that every agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is, to that extent, void.
Regards,
JS Malik
"Hi, My appointment letter states that I cannot join a competitor company for a period of 2 years after leaving my current company. I have not signed any legal document with my current company. I have received a good offer from a competitor company. If I join this company, can my current company sue me based on my appointment letter?
Regards"
From India, Delhi
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Legal Clarification on Non-Performer Termination, Project Based Appointment Letter, Setting UP .pdf
Appointment letter of Company.doc