Dear All Seniors,
Seeking your help!
I was working with an eye hospital as a Lobby Incharge for almost 3 years and left the same in December 2020. I have joined another eye hospital as an Operation Manager. Now, my previous employer has sent a mediation letter asking for liquidated damages, stating that I was not supposed to join a competitor and that I am revealing trade secrets of theirs.
I submitted my resignation via email, which was accepted by the HR department. Full and final settlement was completed, a relieving letter was issued, and the exit process was carried out smoothly. To my surprise, I have received a court letter over a year after leaving the previous company.
The appointment letter contains a clause which they are referring to in court. It states:
"That during the period of your engagement, it is expected and needless to say that all information, data, and hospital secrets regarding its working, business, and affairs which you may come to know by virtue of being an employee of the hospital, will be maintained by you in strict confidentiality and secrecy. You undertake not to divulge any information relating to the hospital, its working, business, and affairs which could be detrimental to its interest, business, working, or reputation, either during your engagement or after. Furthermore, you agree not to join or be associated with any competitor of the hospital or any entity/hospital involved in similar business, directly or indirectly. Breach of this clause will make you liable for payment of damages to the hospital, not exceeding your one-year salary, which will be recovered as liquidated damages, in addition to legal action for breach of contract."
I seek your guidance on what steps I should take next.
Thanks.
From India, Delhi
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Seeking your help!
I was working with an eye hospital as a Lobby Incharge for almost 3 years and left the same in December 2020. I have joined another eye hospital as an Operation Manager. Now, my previous employer has sent a mediation letter asking for liquidated damages, stating that I was not supposed to join a competitor and that I am revealing trade secrets of theirs.
I submitted my resignation via email, which was accepted by the HR department. Full and final settlement was completed, a relieving letter was issued, and the exit process was carried out smoothly. To my surprise, I have received a court letter over a year after leaving the previous company.
The appointment letter contains a clause which they are referring to in court. It states:
"That during the period of your engagement, it is expected and needless to say that all information, data, and hospital secrets regarding its working, business, and affairs which you may come to know by virtue of being an employee of the hospital, will be maintained by you in strict confidentiality and secrecy. You undertake not to divulge any information relating to the hospital, its working, business, and affairs which could be detrimental to its interest, business, working, or reputation, either during your engagement or after. Furthermore, you agree not to join or be associated with any competitor of the hospital or any entity/hospital involved in similar business, directly or indirectly. Breach of this clause will make you liable for payment of damages to the hospital, not exceeding your one-year salary, which will be recovered as liquidated damages, in addition to legal action for breach of contract."
I seek your guidance on what steps I should take next.
Thanks.
From India, Delhi
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Dear member, Every 1-2 months, a post like this keeps appearing. Anyway, click the following link to refer to the ruling by the Delhi High Court: https://www.citehr.com/571397-delhi-...n-compete.html You can send the letter to your ex-employer giving details of the ruling. The inclusion of a non-compete clause in the appointment letter was an error on their part. Thanks, Dinesh Divekar
From India, Bangalore
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8072From India, Bangalore
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