Resignation
Harry
(Querist) 02 June 2012
This query is : Resolved
I am working for a company in Mumbai for about 9 years. I want to leave the company to pursue other opportunities.But the company is putting restrictions that i cannot work for any competitor for 3 years.
I am ready to give a 3 month notice and work till then.The company is forcing me to be sacked or sign a letter that i will not work for 3 years in a competitors firm.Is it possible for them to put a restriction on my career?
V R SHROFF
(Expert) 03 June 2012
You issue Resignation Letter, Personally as well as by Regd. Post.
No restriction can be enforced.
Yes, you can promise that you will not disclose any confidential matter to any of your employer.
Guest
(Expert) 03 June 2012
Of course, your employer is right in asking you to sign the declaration, as the company would not like to get its secrets and data revealed to its competitors for some specific peried through any of its employee leaving the company.
If you are really and honestly interested only for development of your career without any intention to harm the interest of your employer and leaving the company only for that purpose, there should not be any hitch for you to sign declaration to that effect.
Needless to mention, you have no right to develop yourself and some competitive company by harming the interests of your own employer by sharing secrets and data of your employer to its competitors.
ajay sethi
(Expert) 03 June 2012
send a letter in writing to the company that you are willing to serve 3 months notice period and that your resignation be accpeted . also mention that you shall not divulge confidentail information of company . please mention that condition mentioned that you shall not work for competitor for period of 3 years in not acceptable .
Guest
(Expert) 03 June 2012
Of course, your employer is right in asking you to sign the declaration, as the company would not like to get its secrets and data revealed to its competitors for some specific peried through any of its employee leaving the company.
If you are really and honestly interested only for development of your career without any intention to harm the interest of your employer and leaving the company only for that purpose, there should not be any hitch for you to sign declaration to that effect.
Needless to mention, you have no right to develop yourself and some competitive company by harming the interests of your own employer by sharing secrets and data of your employer to its competitors.
ajay sethi
(Expert) 03 June 2012
An employer, for instance, is not entitled to protect himself against competition on the part of an employee after the employment has ceased but a purchaser of a business is entitled to protect himself against competition per se on the part of the vendor. This principle is based on the footing that an employer has no legitimate interest in preventing an employee after he leaves his service from entering the service of a competitor merely on the ground that he is a competitor. (Kores Manufacturing Co. Ltd. v. Kolak Manufacturing Co. Ltd(
ajay sethi
(Expert) 03 June 2012
the Supreme Court in Superintendence Co. of India v. Krishun Murgai. (AIR 1980 SC 1717) has ruled that under Section 27 of the Contract Act, a service covenant extended beyond the termination of the service is void.
ajay sethi
(Expert) 03 June 2012
the Supreme Court in Superintendence Co. of India v. Krishun Murgai. (AIR 1980 SC 1717) has ruled that under Section 27 of the Contract Act, a service covenant extended beyond the termination of the service is void.
"The drafting of a negative covenant in a contract of employment is often a matter of great difficulty. In the employment cases so far discussed, the issue has been as to the validity of the covenant operating after the end of the period of service. Restrictions on competition during that period are normally valid, and indeed may be implied by law by virtue of the servant's duty of fidelity. In such cases the restriction is generally reasonable, having regard to the interest of the employer, and does not cause any undue hardship to the employee, who will receive a wage or salary for the period in question. But if the covenant is to operate after the termination of services, or is too widely worded, the Court may refuse to enforce it. ……………At the time of the agreement, the employee may have given little thought to the restriction because of his eagerness for a job; such contracts "tempt improvident persons, for the sake of present gain, to deprive themselves of the power to make future acquisitions, and expose them to imposition and oppression
Attribution: http://www.citehr.com/343871-restricting-joining-competitor.html#ixzz1whqeJlN0
Guest
(Expert) 03 June 2012
Of course, your employer is right in asking you to sign the declaration, as the company would not like to get its secrets and data revealed to its competitors for some specific peried through any of its employee leaving the company.
If you are really and honestly interested only for development of your career without any intention to harm the interest of your employer and leaving the company only for that purpose, there should not be any hitch for you to sign declaration to that effect.
Needless to mention, you have no right to develop yourself and some competitive company by harming the interests of your own employer by sharing secrets and data of your employer to its competitors.
