sapez
I am working as Sales Manger in healthcare industry and now i resigned from my existing employer and serving my notice.During my exit formalities,Hr is insisting to sign an exit agreement where it was not mentioned in my terms and policy signed during my appointment.please let me know the legal validity and also if i am not signed how can i take my reliving.
From India, Bangalore
nathrao
3131

What is the content of this exit agreement?
No one can take away your right to work including with competitors.
You are off course expected to maintain secrecy of your former employers processes etc.
What does your appointment order say about exit procedure?

From India, Pune
sapez
please share the legality of separation agreement which my employer is insisting to sign to get my reliving and F&F claim what will be the legal remedies to overcome the issue..
From India, Bangalore
nathrao
3131

Specific wordings of exit agreement needs to be examined.If agreement is confined to asking you to maintain the company's commercial secrecy,it is all right,but clauses which deny the right to work in similar organisations would not be in order.
At any rate you need to consult a lawyer and sort out the matter,as you state company wants you to sign exit agreement and then only will they release your FNF.

From India, Pune
HR_learning2006
45

Dear Mr. Sapez,
Please carefully read,understand,take advice before signing such Exit Agreements.
As Mr. Nathrao stated the terms ad conditions of the Exit Agreement would be non joining of competitors and maintaining secrecy of information.
However your company should have made you to sign such agreements at the time of your appointment and not after resignation.
In case if you are joining any competitor company,please do not reveal it to your current company and do not sign any clause pertaining to it else your current company can take legal action against you.
You can also speak to the HR /Management of the company you are joining if required and inform them about Exit Agreement but only after getting clarity on the clauses of Exit agreement .
Regards,
sumit

From India, Mumbai
sapez
Here below mention some of the key wordings in the separation agreement
In my appointment it is two months notice and there is nothing called separation agreement metioned

the obligations of the parties post acceptance of the resignation was discussed between the parties particularly with reference to the obligation of the employee with regard to non-solicitation, non-compete, confidentiality and any statement against the company. All the issues were sorted out and agreed to the mutual satisfaction.
The Employee in consideration of the acceptance of the resignation and settlement of his terminal dues hereby agrees and undertakes obligations relating to Non-disclosure, Non-solicitation and non-compete and obligations against making any adverse comments against the Company as set out below:-
3.1 The Employee accepts that during tenure of his employment, he had access to the confidential information (whether written or oral) which may relates to the Company and/or its affiliates or their clients and business partners with regard to the and including, but not limited to, past, present or future plans, forms, methods, technology, inventions, computer software programs, copyrights, research and development activities, employee information, organizational structure, customer, financial and business information, trade secrets or other confidential or proprietary information (‘Confidential Information’) and promises to hold Confidential Information in strict confidence and he further promise that he will not directly or indirectly use, reveal, report, publish or disclose such Confidential Information to any person, firm or company and he shall not use such information for causing any prejudice to the rights and business of the Company and/or its affiliates or their clients and business partners.
3.2. In order to protect the Company's and/or its affiliate’s rights in and to the Confidential Information and to ensure that no unfair advantage is taken of Employee’s knowledge of and access to the Confidential Information of the Company, the Employee agrees that for a period of 6 Months after his relieving from the services of the Company, the employee shall not:
Directly or indirectly solicit or encourage any employee of the Company and/or its affiliates or any consultant to leave the employment of the Company and join any other company, firm or undertaking and take up employment/engagement elsewhere.
(b) Commit any act or omission which may cause prejudice to the Company and/or its affiliates or their business and shall not, directly or indirectly, as owner, officer, director, stockholder, partner, associate, consultant, manager, advisor, representative, employee, agent, creditor or otherwise, attempt to solicit or in any other way disturb or service any person, firm or corporation which is (a) in a business relationship with the Company or its affiliates or (b) is a competitor of Company or its affiliates and shall do nothing which may tarnish the image of the Company in the eyes of the public. Further, the employee agrees not to make any adverse statement against the Company or its business or its employees in public either through Media, Print or Electronics or otherwise.

6. The employee acknowledges that each of the prohibitions and restrictions contained in the provisions as above:
(i) must be read and construed and will have effect as a separate, severable and independent prohibition or restriction and will be enforceable accordingly; and
(ii) Is reasonable as to period, territorial limitation and subject matter; and It is the intention of the parties that all combinations of such prohibitions and restrictions will apply and be enforceable.

8. Company shall be entitled to injunctive and other equitable relief permitted by law, in the event of a breach or threatened breach of this Agreement by Employee. Employee shall not plead as a defence that there would be an adequate remedy at law. Any such relief shall be in addition to, and not in lieu of, money damages or any other legal or equitable remedy available to the Company.

9. No waiver of any provision of this Agreement shall constitute a waiver of any other provision(s) or of the same provision on another occasion. Failure of either Party to enforce any provision of this Agreement shall not constitute a waiver of such provision or any other provision(s) of this Agreement.
10. This Agreement may be executed in counterparts, each of which when executed and delivered shall be an original, but all of which shall constitute one and the same instrument.
WITNESS WHEREOF the parties have appended their signature on the day, month and year mentioned above in token of having accepted the above terms and conditions.

From India, Bangalore
sapez
Below mention some of the points in the exit agreement.
The Employee in consideration of the acceptance of the resignation and settlement of his terminal dues hereby agrees and undertakes obligations relating to Non-disclosure, Non-solicitation and non-compete and obligations against making any adverse comments against the Company as set out below:-
4.1 The Employee accepts that during tenure of his employment, he had access to the confidential information (whether written or oral) which may relates to the Company and/or its affiliates or their clients and business partners with regard to the and including, but not limited to, past, present or future plans, forms, methods, technology, inventions, computer software programs, copyrights, research and development activities, employee information, organizational structure, customer, financial and business information, trade secrets or other confidential or proprietary information (‘Confidential Information’) and promises to hold Confidential Information in strict confidence and he further promise that he will not directly or indirectly use, reveal, report, publish or disclose such Confidential Information to any person, firm or company and he shall not use such information for causing any prejudice to the rights and business of the Company and/or its affiliates or their clients and business partners.
4.2. In order to protect the Company's and/or its affiliate’s rights in and to the Confidential Information and to ensure that no unfair advantage is taken of Employee’s knowledge of and access to the Confidential Information of the Company, the Employee agrees that for a period of 6 Months after his relieving from the services of the Company, the employee shall not:
3
(a) Directly or indirectly solicit or encourage any employee of the Company and/or its affiliates or any consultant to leave the employment of the Company and join any other company, firm or undertaking and take up employment/engagement elsewhere.
(b) Commit any act or omission which may cause prejudice to the Company and/or its affiliates or their business and shall not, directly or indirectly, as owner, officer, director, stockholder, partner, associate, consultant, manager, advisor, representative, employee, agent, creditor or otherwise, attempt to solicit or in any other way disturb or service any person, firm or corporation which is (a) in a business relationship with the Company or its affiliates or (b) is a competitor of Company or its affiliates and shall do nothing which may tarnish the image of the Company in the eyes of the public. Further, the employee agrees not to make any adverse statement against the Company or its business or its employees in public either through Media, Print or Electronics or otherwise.
5. The Employee agrees to surrender all the properties and other documents either in hard copy or in Electronic Form to the Company which had been entrusted to his possession or had come to his possession during the course of his employment.
6. The employee acknowledges that each of the prohibitions and restrictions contained in the provisions as above:
(i) must be read and construed and will have effect as a separate, severable and independent prohibition or restriction and will be enforceable accordingly; and
(ii) Is reasonable as to period, territorial limitation and subject matter; and It is the intention of the parties that all combinations of such prohibitions and restrictions will apply and be enforceable.
7. This Agreement shall be governed by and construed in accordance with the laws of India without giving effect to any choice of law or conflict of law provisions. The Parties consent to the exclusive jurisdiction and venue in the courts of Karnataka in the city of Bangalore.
8. Company shall be entitled to injunctive and other equitable relief permitted by law, in the event of a breach or threatened breach of this Agreement by Employee. Employee shall not plead as a defence that there would be an adequate remedy at law. Any such relief shall be in addition to, and not in lieu of, money damages or any other legal or equitable remedy available to the Company.

No waiver of any provision of this Agreement shall constitute a waiver of any other provision(s) or of the same provision on another occasion. Failure of either Party to enforce any provision of this Agreement shall not constitute a waiver of such provision or any other provision(s) of this Agreement.
10. This Agreement may be executed in counterparts, each of which when executed and delivered shall be an original, but all of which shall constitute one and the same instrument.
WITNESS WHEREOF the parties have appended their signature on the day, month and year mentioned above in token of having accepted the above terms and conditions.

From India, Bangalore
nathrao
3131

""In order to protect the Company's and/or its affiliate’s rights in and to the Confidential Information and to ensure that no unfair advantage is taken of Employee’s knowledge of and access to the Confidential Information of the Company, the Employee agrees that for a period of 6 Months after his relieving from the services of the Company, the employee shall not:

3

(a) Directly or indirectly solicit or encourage any employee of the Company and/or its affiliates or any consultant to leave the employment of the Company and join any other company, firm or undertaking and take up employment/engagement elsewhere.""

Restriction to join any other company for 6 months is unreasonable.

Will the company pay 6 months gross salary in addition to FNF settlement.

Secondly the offer letter did not make any such stipulation of such an restrictive agreement on exit??.

i am sure the company would have specified clauses regarding exit from company.

By the way how long did you serve this company??

Personally I would not sign any such agreement which prevents the lawful exercise of your right to livelihood.

From India, Pune
asbhat
51

In the recitals the clause reads ..."The Employee in consideration of the acceptance of the resignation and settlement of his terminal dues hereby agrees and undertakes obligations relating to Non-disclosure, Non-solicitation and non-compete and obligations against making any adverse comments against the Company as set out below:-........"
Here the word 'non-compete' is mischievous to say the least. besides if there was no mention of the appointment letter why should you agree to such conditions at all??
Finally receiving the full and final settlement for the work you have performed is your right. Other than that what consideration is the company offering for signing this agreement??
Be careful before you sign this agreement.
A S Bhat

From India, Pune
nathrao
3131

At senior level exit agreements are becoming quite stiff to protect the company,inside information.
Latest trends can be seen in this link:
Big Four consultancies EY, PwC, Deloitte and KPMG fencing staff with stricter exit clauses - The Economic Times

From India, Pune
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