Can any companies force their staff to sign the non-compete policy to ensure their employees will not be poached by their competitors? Is there any legal binding in this type of policy?
I have to say that I'm not very into this type of policy.
From Singapore, Singapore
Acknowledge(0)
Amend(0)
I have to say that I'm not very into this type of policy.
From Singapore, Singapore
Acknowledge(0)Amend(0)
Hello friend,
Companies do have "non-compete agreements" and they ask their employees to sign these bond agreements. This is to protect the intellectual property and prevent poaching by competitors. However, legally, these may be untenable as they go against the individual's freedom. Also, it is practically quite difficult to keep track of an employee who has left - whether they are joining a competitor or not.
Some non-compete agreements require that the individual will not join a competitor for a certain minimum period - say, 3 years. Some companies may offer higher salaries to specialists who sign these agreements to retain them.
Regards,
Nishikant
From United States, Greensboro
Acknowledge(0)Amend(0)
21Companies do have "non-compete agreements" and they ask their employees to sign these bond agreements. This is to protect the intellectual property and prevent poaching by competitors. However, legally, these may be untenable as they go against the individual's freedom. Also, it is practically quite difficult to keep track of an employee who has left - whether they are joining a competitor or not.
Some non-compete agreements require that the individual will not join a competitor for a certain minimum period - say, 3 years. Some companies may offer higher salaries to specialists who sign these agreements to retain them.
Regards,
Nishikant
From United States, Greensboro
Acknowledge(0)Amend(0)
As a HR person will you hire someone who had sign a non competitive policy with his current company given that your company is consider as one of the theirs competitive.
From Singapore, Singapore
Acknowledge(0)Amend(0)
From Singapore, Singapore
Acknowledge(0)Amend(0)
Hello friend,
As an HR professional, I would not hire a person who has signed a non-compete agreement with their current employer, especially if we are competitors. However, we can only know about this if the individual discloses that they have signed such an agreement. It is not possible to verify directly with the competitor if this is the case. Therefore, there is a risk involved when a person joins without disclosing this information. This could potentially lead to legal complications later on. Regardless of the outcome of any legal proceedings, it would be a hassle for both the employee and the organization that hired them.
There are various risks that come with hiring employees, and non-disclosure of important information is one of them. I would recommend terminating an employee who fails to disclose such information as per company policy. However, this policy should be clearly defined for proper implementation.
Regards,
Nishikant
From United States, Greensboro
Acknowledge(0)Amend(0)
As an HR professional, I would not hire a person who has signed a non-compete agreement with their current employer, especially if we are competitors. However, we can only know about this if the individual discloses that they have signed such an agreement. It is not possible to verify directly with the competitor if this is the case. Therefore, there is a risk involved when a person joins without disclosing this information. This could potentially lead to legal complications later on. Regardless of the outcome of any legal proceedings, it would be a hassle for both the employee and the organization that hired them.
There are various risks that come with hiring employees, and non-disclosure of important information is one of them. I would recommend terminating an employee who fails to disclose such information as per company policy. However, this policy should be clearly defined for proper implementation.
Regards,
Nishikant
From United States, Greensboro
Acknowledge(0)Amend(0)
Hi HRlife,
Non-compete policies are not always valid in the court of law as they impinge on the right to freedom of employment. I am aware that most companies in India follow this practice to have employees sign this policy, but it has many grey areas. Companies use this to protect their interests, which may not be defensible in court.
However, please remember, one cannot prevent employees from joining the competition, but they can sign an agreement to protect intellectual property rights. This ensures that information on products or clients is safeguarded for a specified period, such as six months or a year after the end of employment with the company.
Regards,
Rajat
From India, Pune
Acknowledge(0)Amend(0)
Non-compete policies are not always valid in the court of law as they impinge on the right to freedom of employment. I am aware that most companies in India follow this practice to have employees sign this policy, but it has many grey areas. Companies use this to protect their interests, which may not be defensible in court.
However, please remember, one cannot prevent employees from joining the competition, but they can sign an agreement to protect intellectual property rights. This ensures that information on products or clients is safeguarded for a specified period, such as six months or a year after the end of employment with the company.
Regards,
Rajat
From India, Pune
Acknowledge(0)Amend(0)
How a non compete policy is right when the employees are hired based on their skills and experience in the same domain and technology?
Acknowledge(0)Amend(0)
Acknowledge(0)Amend(0)
Dear friends,
Please see the article attached to the following post for the legality of such bonds: https://www.citehr.com/30808-bond-legal-india.html
Regards,
From India, Malappuram
Acknowledge(0)Amend(0)
Please see the article attached to the following post for the legality of such bonds: https://www.citehr.com/30808-bond-legal-india.html
Regards,
From India, Malappuram
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Employee reference policy.doc