About employment after resignation
CHINTU
(Querist) 09 September 2014
This query is : Resolved
i worked with idbi bank (public sector bank) for around 1 year and resigned from there due to further preparation for civil services .
in reliving letter of idbi bank they put a clause that
"CAN NOT TAKE ANY COMMERCIAL EMPLOYMENT UPTO 2 YEAR FROM THE DATE OF RESIGNATION FROM THE BANK"
IN THE RESIGNATION THEY DID NOT DESCRIBE ABOUT THE TERM COMMERCIAL EMPLOYMENT .
BUT AS IN IDBI OFFICERS RULE BOOK ITS ABOUT EMPLOYMENT WITH PRIVATE ORGANIZATION NOT FOR GOVERNMENT ONES.
BUT I AM TENSED THAT WHEN I WILL GO TO JOIN NEXT GOVERNMENT SECTOR JOB AS MAY BE
ANOTHER PUBLIC SECTOR BANK . THEN SHOULD I HAVE TO TAKE PERMISSION FROM IDBI (ALREADY RESIGNED) . OR ANOTHER PSB CAN ASK ME ABOUT PERMISSION LETTER FROM IDBI AS IDBI DID NOT DESCRIBE THE TERM "COMMERCIAL EMPLOYMENT " IN THE REVELING
LETTER
Kumar Doab
(Expert) 10 September 2014
Indian courts of law have consistently been declining to enforce NON Compete Clauses/agreements post termination of employment as it hits right to earn livelihood and clauses of Indian Contracts Act.
You may approach an able Labor Law Consultant/Service Lawyer in person with all docs on record and proceed under his expert advice.
Rajendra K Goyal
(Expert) 10 September 2014
If they put the condition not to accept the employment with any of their client, that would be justified, putting condition for not to accept the employment with any of the commercial entity is not justified. You should send legal notice to withdraw the condition.
Kumar Doab
(Expert) 10 September 2014
It is felt that even the condition 'to not to be employed/in business with client/competitor, post termination of employment........................is unreasonable, unconscionable,unenforceable,illegal and void to that extent.'
Valuable advice of learned experts/members is sought.
V R SHROFF
(Expert) 10 September 2014
CONSULT Labor Law Consultant/Service Lawyer
WHO IS WELL VERSED WITH BANK EMPLOYEE,
In Collector Office, BANDRA (EAST) Mumbai, Labour Law practitioners can guide you [ 7th Floor Bar Room]near Chetna College
Kumar Doab
(Expert) 10 September 2014
Kindly update the advice of your Labor Law Consultant/Service Lawyer in this thread.
It shall help.
malipeddi jaggarao
(Expert) 10 September 2014
The clause in the relieving letter is unlawful. They cannot prevent you to earn your livelihood. Is there any such condition in your offer letter or letter of appointment?
Normally after retirement the Bank Officers are not allowed to join in the organisations which are the bank's own customers having credit facilities. This is to prevent the officials to make favours during their employment in the bank and secure post-retirement employment with that organisation. This is also, I suppose for one year.
Verify your offer letter/appointment letter and if you do not find such clause, the following course of action is suggested:
1. Keep the original relieving letter with you and send a letter to the bank along with copy of reliving letter pointing out the clause and request them to remove the same and issue fresh relieving letter as this clause adversely affect your right to earn livelihood. Give reasonable period, say 15 days.
2. If no reply is received, send a lawyer notice reiterating the contents in the first letter with additional clause that you will seek legal remedy at the cost of the bank.
Let these things go in a routine manner and do not take these things into your mind, which will hamper the preparation for exams.
RAJU O.F.,
(Expert) 10 September 2014
I feel IDBI Bank cannot restrict your future employment in any estalishment. You may just ignore such conditions, of te relieving letter.
Advocate. Arunagiri
(Expert) 10 September 2014
It is a common condition imposed by all the banks in India. Even RBI imposes the same condition.
I am just reproducing it :-
RESERVE BANK OF INDIA ( STAFF ) REGULATIONS, 1948
37A. (1) No officer of the Bank who has ceased to be in the
Bank's service, whether by retirement, resignation or otherwise,
shall within a period of two years from the date when he/she
finally ceases to be in the Bank's service, accept or undertake a
commercial employment except with the previous sanction in
writing of the Governor.
so, you are bound by the rule of the bank.
malipeddi jaggarao
(Expert) 10 September 2014
@Advocate Arunagiri - commercial employment - what they mean is employment in the organizations of their clients. Let the IDBI Bank say the same thing.
Advocate. Arunagiri
(Expert) 10 September 2014
@Expert Mr.Jaggaro.
They do not restrict with their clients.
I am reproducing the RBI rules. This rule clarifies what is commercial employment. Naturally all the banks will follow these terms.
RESERVE BANK OF INDIA ( STAFF ) REGULATIONS, 1948
37 (2) For the purpose of this Regulation, "commercial employment" means :
(i) an employment in any capacity, including that of an agent, under a Company, Co-operative Society, firm or individual engaged in trade, commercial, industrial, financial or professional business and also includes a directorship of such a company and partnership of such firm but does not include employment under a body corporate wholly or substantially held or controlled by Government,
(ii) setting up a practice, either independently or as a partner of a firm, as adviser or consultant in matters in respect of which the officer who has ceased to be in the Bank's service -
(a) has no professional qualifications and the matters in respect of which the practice is to be set up or is carried on are relatable to his/her official knowledge or experience, or
(b) has professional qualifications but the matters inrespect of which such practice is to be set up are such as are likely to give his/her clients an unfair advantage by reason of his/her previous official position, or
(iii) undertaking work involving liaison or contact with the offices or officers of the Bank and/or Government. Explanation: For the purposes of this clause "employment under a co-operative societyā€¯ includes the holding of any office, whether elective or otherwise, such as that of President, Chairman, Manager, Secretary, Treasurer and the like, by whatever name called in such society.
malipeddi jaggarao
(Expert) 11 September 2014
Thanks expert Sri Arunagiri for clarifying my misconception in this regard.
Advocate. Arunagiri
(Expert) 11 September 2014
Mr.Jaggarao, it is my pleasure to accept your compliments.
T. Kalaiselvan, Advocate
(Expert) 15 September 2014
I think expert Mr.Arunagiri has rendered the opinion in a more infoormative and acceptable manner, hope this solves the author's query.
