Restrictive covenant

Querist : Anonymous (Querist) 09 March 2018 This query is : Resolved
resp, sir
my friend has a small business of industrial pest control and has 10 employees . having tough competition , facing problem of employees going to competitor and sharing confidential information .

what is the process of putting employees in restrictive covenant agreement ?
to protect the business .

please guide .

thanking you .

sunil

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Sri Vijayan.A (Expert) 09 March 2018
The new employer has to employeeafter getting relieving order or NoC from the original employer. This is business ethics.

To avoid migration of employees, employer has to offer good emoluments. This is business strategy.

Kumar Doab (Expert) 09 March 2018
Which restrictive covenant you have thought of?
Is IT NCC?

Kumar Doab (Expert) 09 March 2018
The information of market, competitors, competitive products remain in mind and cannot be erased…!
You can benefit from post of Mr. Sri Vijayan A
Check with other business establishment who you know and which has vintage employees.
IT is usually good emoluments, job security, respect, good working atmosphere, training, provision of appointment letter, salary slips, social security instruments e.g; PF,ESIC, Group insurance, etc …

Querist : Anonymous (Querist) 10 March 2018
thanks you very much sir for your valuable guidance , but in a small scale Business it is not possible to provide such facilities . for a big corporate company it is possible.

I need ur guidance on
1) non competition covenants
2) non solicitation covenant
3) non poaching covenants
4) non dealing covenants
5) geographic restrictive covenants.

thanks

Kishor Mehta (Expert) 11 March 2018
The query is relevant but unfortunately there doesn't seem to be any practical solutions. It is not feasible to constrain a person to secrecy just by taking his signature on a document unless one has the resources to follow it up legally, and small enterprises can hardly think of it.