Starting a compete business after leaving company
Syam
(Querist) 30 July 2013
This query is : Resolved
Hi all,
I worked as Web developer for a Web Solutions & Marketing company in the past for 1 year and quit the job to start my own business i.e., a small affiliate marketing website. My past company also running a few affiliate marketing websites. So is there any chance for my past employer to file a case against me on starting a compete website/Business.
There is no non-compete agreement between us and they did not mention any such things in the offer letter too.
But i bought and register the domain through my brother and his name while i am working for that company and implemented the website after i left the company.
Is there any problem for me ?
Please clarify and advise me.
Regards,
Syam
Devajyoti Barman
(Expert) 31 July 2013
Since there is no non compote agreement between tow of you, you can run this business.
Syam
(Querist) 31 July 2013
Thank you very much for your answer,
I found below Terms in offer letter.
1. You are responsible for the knowledge transfer of all the responsibilities you are currently handling to another person identified by the management in case you are relieved.
2.During employment with the company, you should not take up any assignments with any other company/organisation/freelancing either directly or indirectly on full time or part time.
My employer is threatening me to handover the website or ready for legal action.
What would you suggest me ? Please help me.
Regards,
Syam
Kumar Doab
(Expert) 31 July 2013
Mr. Barman has given valuable advice. Kindly follow it.
Since you have not signed any such (Non Compete) agreement there won’t be any breach…………………….
This is based on the information posted by you in the thread.
Reference to the other thread/posts initiated by you
http://www.lawyersclubindia.com/forum/Starting-a-compete-business-after-leaving-company-85569.asp#.UfiSJdKAqWM
While going thru your posts again some other points have occurred and this post is an attempt on such points………………..
It is reiterated that it shall be appropriate to show all of your documents to a competent and experienced lawyer/law firm, specializing in such matters, give inputs in person……………………………………………spend quality time with your lawyer and proceed under expert advice and wise counsel of your lawyer.
The lawyer that has seen all documents and has analyzed the merits can advise you the best, and let your lawyer’s opinion be final.
While a gracious and good natured employer may congratulate you on starting your own venture.
A zealous and vindictive employer on seeing you in the market as competitor may look for avenues to level charges…………………………………..
It is felt that the Non Compete clause is valid during the term of employment and period of contract if any signed with employer.
Therefore you may check at your end if you have signed an agreement to serve for……………......years and if you are separating before the expiry of any such period.
While you separate ensure that you affirm in notice of resignation/resignation that all tasks/assignments on hand are completed by you and nothing is pending at your end and charge shall be handed over by you to the designated replacement (within and up to last day in office/ expiry of notice period) and good offices of appointing authority, MD, CEO………………. may inform you (preferably in writing) to whom the charge should be handed over/knowledge should be transferred.
It shall be appropriate to ask for all steps involved in such process to be supplied in writing by employer…………………….and complete all such steps on record in writing with a copy to self and a proper acknowledgment to this effect be obtained.
The necessary process and preparation for handing over of the charge, knowledge transfer and to designate an employee (HOD or replacement) for the same should be completed by employer within and up to last day in office of the employee that has submitted notice/resignation.
The employee that has submitted notice/resignation must take care to obtain proper acknowledgment for successful/satisfactory handing over of the charge, knowledge transfer on the spot from the competent employee of the company………………….
This is to rule out any tantrums later claiming that knowledge transfer was not complete/ successful/ all steps were not complied with………………company has suffered loss, contract has been breached, the employee had direct/indirect involved with venture of brother………………. etc , and its adverse effect on issuance of proper relieving letter, and even more…………………….
If the employer is not able to install or designate an employee for (in specific) knowledge transfer and wish to arrange it later (after the last day in office of the employee that has resigned) the employer should issue a specific request…………………………
It is discretion of the employee that has resigned to accept or attach some conditions e.g. mutually convenient date and time, reimbursement of expenses to attend the process etc……………………….
However it shall be good to clear the handover/knowledge transfer on record………………..
You may also look into the offer letter/appointment letter/ contract/agreement………………………etc for any clause on Non Disclosure, Non Solicitation, Confidential information, Trade Secrets, Database Protection etc……………..
Such clause if any may stand as an exception…………………..in post employment period………………………….
As far as the threats being issued to you are concerned you may approach your lawyer and share facts, without concealing anything and prepare your defense.
The matter may not end even if you handover the website.
Your lawyer would know to defend you from legal injury.
If the employer issues any letter/email/notice/legal notice, proceed under expert advice of your lawyer.
Valuable advice of learned experts is sought.
M V Gupta
(Expert) 31 July 2013
The first clause quoted by you obliges u to hand over to ur successor in office all the knowledge while leaving the job. The second clause restricting ur liberty to serve any other organisation or practice as a free lance service provider applies only during your service period and does not extend beyond it. Further the new website created is in your brother's name and not urs. you are only working for ur brother. Hence in case ur previous employer issues any notice or takes any legal action u should contest the same. better as advised by the experts u should take the services of an experienced Lawyer.
Syam
(Querist) 31 July 2013
Many thanks to Barman, Kumar and Gupta.
So i will proceed to contact a lawyer, please suggest me what type of lawyer and expertise required to handle this case.
Regards,
Syam
M V Gupta
(Expert) 01 August 2013
Generally clients would like to engage services of an advocate near to their place of work. I am at Andheri(W), Mumbai. If u feel like consulting me u are most welcome. Pl contact me on Mob No. 7498134906.
Syam
(Querist) 01 August 2013
Thank you sir, but i am from Andhra Pradesh. If there are any experts in Andhra Pradesh to handle this case, please give me your contact details.
Kumar Doab
(Expert) 01 August 2013
If you wish to avail the services of LCI lawyer you can conduct search at:
http://www.lawyersclubindia.com/lawyers_search/#.Ufp_ntKAqWM
The seniors may be knowing and may recommend a lawyer.
