I have signed the offer letter through email now but could not sign on appointment letter issues afterwards. Both have a one-year no-compete clause.. now want to join the competition can I join?
From India, Patna
Acknowledge(0)
Amend(0)
From India, Patna
Acknowledge(0)Amend(0)
Dear Colleague,
Whether you sign the offer letter or the appointment letter, both equally amount to "agreed terms of appointment contract." You mentioned there is a clause on non-compete for one year. The clause is binding. However, there are legally different views by courts, and it is said that such a clause is not valid, etc. Such a clause is not healthy in the present scenario where everyone is a competitor for everyone. Hence, such clauses are no longer valid, and this clause is not going to help the employer other than giving a moral threat to the employees. This is my view. Others may have a different view on this too, which we cannot stop. Overall, such a clause goes against the fundamental rights of a person.
However, if the employer intends to take action, they may raise litigation against you, and regardless of the final outcome, you need to respond and undergo the process. This has to be looked at more from a "moral" aspect rather than "legal."
In this case, a smooth discussion is also possible. In some of my previous organizations, we allowed talents to join competitors despite such clauses in the appointment order based on the written commitment given by the said employees, stating that they will not disclose any trade secrets or other information to the other company and will not share any data of the company under any circumstances, etc. It went well. In today's tech world, obtaining data from other companies is not difficult, and such clauses in the appointment contracts need to be reviewed unless such a clause significantly impacts the trade/safety/secrecy of the business.
Legally, such clauses are not enforceable. However, having signed a clause and breaching it—whether it is according to your conscience.
Are you prepared to undergo the legal process if it is raised by the employer for litigation (may or may not, depending on the employer's maturity level)—are a few of the factors to be weighed before you make a decision.
In case of breach, is there any clause on specific compensation to be done, etc., to be studied.
Make your decision with your own clarity in mind.
From India, Chennai
Acknowledge(0)Amend(0)
321Whether you sign the offer letter or the appointment letter, both equally amount to "agreed terms of appointment contract." You mentioned there is a clause on non-compete for one year. The clause is binding. However, there are legally different views by courts, and it is said that such a clause is not valid, etc. Such a clause is not healthy in the present scenario where everyone is a competitor for everyone. Hence, such clauses are no longer valid, and this clause is not going to help the employer other than giving a moral threat to the employees. This is my view. Others may have a different view on this too, which we cannot stop. Overall, such a clause goes against the fundamental rights of a person.
However, if the employer intends to take action, they may raise litigation against you, and regardless of the final outcome, you need to respond and undergo the process. This has to be looked at more from a "moral" aspect rather than "legal."
In this case, a smooth discussion is also possible. In some of my previous organizations, we allowed talents to join competitors despite such clauses in the appointment order based on the written commitment given by the said employees, stating that they will not disclose any trade secrets or other information to the other company and will not share any data of the company under any circumstances, etc. It went well. In today's tech world, obtaining data from other companies is not difficult, and such clauses in the appointment contracts need to be reviewed unless such a clause significantly impacts the trade/safety/secrecy of the business.
Legally, such clauses are not enforceable. However, having signed a clause and breaching it—whether it is according to your conscience.
Are you prepared to undergo the legal process if it is raised by the employer for litigation (may or may not, depending on the employer's maturity level)—are a few of the factors to be weighed before you make a decision.
In case of breach, is there any clause on specific compensation to be done, etc., to be studied.
Make your decision with your own clarity in mind.
From India, Chennai
Acknowledge(0)Amend(0)
Signing an Appointment Letter via Email
Signing an appointment letter via email is the same as signing it in person. Therefore, the fact that you have not signed the physical letter is immaterial.
Legality of Non-Compete Clauses
On the other hand, most courts have repeatedly declared that a non-compete clause is illegal, except in cases where the person has sold the business, goodwill, or brand name and was paid for the same. Otherwise, such agreements are a violation of the right to livelihood.
From India, Mumbai
Acknowledge(0)Amend(0)
Signing an appointment letter via email is the same as signing it in person. Therefore, the fact that you have not signed the physical letter is immaterial.
Legality of Non-Compete Clauses
On the other hand, most courts have repeatedly declared that a non-compete clause is illegal, except in cases where the person has sold the business, goodwill, or brand name and was paid for the same. Otherwise, such agreements are a violation of the right to livelihood.
From India, Mumbai
Acknowledge(0)Amend(0)
Employers have stopped mentioning salary details in letters of intent/offer letters as an advantage was being taken to seek better salaries from the competition. What you are contemplating to do is not ethically correct, though you may get away legally as you have not joined yet.
Think it over.
Col. Suresh Rathi
From India, Delhi
Acknowledge(0)Amend(0)
Think it over.
Col. Suresh Rathi
From India, Delhi
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.
Non-compete clause in service contracts.pdf
Non-compete Clause of Infy.jpg
CTC_SALARY_SLIP _FORM_(legal)(1 ).xls