Swapan (Manager) 27 July 2011

Termination or Resignation or Mutual

Hello Experts

Please see the below scenario, what can this be considered as - Termination or Resignation or Mutual Consent ?

- A joined a company (B) signing 3 year bond with post employement job restriction.

- After 9 months Company realiz that the X divison (for which A was responsible) is not generation desired revenue. So It should be closed. A was offered a new role ( with change in emloyment agreement).

- A refused the new offer. and dues/salary/share paid to A.

- After 7 months A starts his own work similar to Company's business.

- Company inovked Arbitration clause signed in the emplyement agreement.

How legal is this? How can Company do such a thing when A is not their payroll for 7 months?

Help!

Swapan

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6 Replies

Kumar Doab (FIN) 27 July 2011

What is the period of "post employement job restriction."

This can be for a reasonable period. Usually 6 months is inserted as a period.6 months should be more than sufficient.

The restriction is for employment and also for own venture?

One has to earn livelihood and feed and look after self, family, parents, and further his career and progress in life. For this one shall move in his area of expertise and experience.

What do they expect from ex employee cook and sell biryani?

Swapan (Manager) 27 July 2011

-12 months for post employement job restriction.

- The restriction is for employment and also for own venture? YES

Kumar Doab (FIN) 27 July 2011

12 months is unreasonable.

You had accepted the agreement with this clause.

Kindly approach a local lawyer and defend yourself in arbitration proceedings.

V. VASUDEVAN (LEGAL COUNSEL) 28 July 2011

Both clauses are void and hence respond suitably in consultation with a corporate lawyer.

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Kumar Doab (FIN) 28 July 2011

Learned Mr. Vasudevan has clarified the matter with his valuable advice.

Kindly proceed as advicsed.

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(Guest)

Dear Swapan,

Had you given the exact wording of the agreement/bond clause, that would have helped more to provide you accurate opinion, as that all depend upon the language of the stipulated condition. If the condition relates to start of own work similar to Company's business, that can be understoo, but if that puts restriction for employment in a company doing similar business, that condition can be void.