Respected members,
Presently, I am working in the sales department of my company. At the time of joining, I filled out a service contract, which includes a clause of a bond to work for a minimum of 2 years for the company. As part of this agreement, a portion of my salary is deducted each month, which will be refunded to me after the completion of 2 years of service.
Now that my 2 years of employment are completed, I am looking to make a job change to a competitor's company. However, I have recently discovered that the service contract also includes a clause stating that I cannot directly or indirectly join any of the competitor's companies for 2 years from the date of leaving my current company.
I think this is very unfair and restrictive. I request all of you to provide me with some guidance on this matter regarding whether I can change my job or not.
Awaiting your valuable suggestions.
From India, Bikaner
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Presently, I am working in the sales department of my company. At the time of joining, I filled out a service contract, which includes a clause of a bond to work for a minimum of 2 years for the company. As part of this agreement, a portion of my salary is deducted each month, which will be refunded to me after the completion of 2 years of service.
Now that my 2 years of employment are completed, I am looking to make a job change to a competitor's company. However, I have recently discovered that the service contract also includes a clause stating that I cannot directly or indirectly join any of the competitor's companies for 2 years from the date of leaving my current company.
I think this is very unfair and restrictive. I request all of you to provide me with some guidance on this matter regarding whether I can change my job or not.
Awaiting your valuable suggestions.
From India, Bikaner
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13
Thanks for posting the SC judgment.
A good point made by the judge: "It is well settled that such post-termination restraint, under Indian Law, is in violation of Section 27 of the Contract Act. Such contracts are unenforceable, void, and against public policy. What is prohibited by law cannot be permitted by the Court's injunction."
Pon
From India, Lucknow
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A good point made by the judge: "It is well settled that such post-termination restraint, under Indian Law, is in violation of Section 27 of the Contract Act. Such contracts are unenforceable, void, and against public policy. What is prohibited by law cannot be permitted by the Court's injunction."
Pon
From India, Lucknow
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Non-compete clause in service contracts.pdf