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Gagandeep (Service Engineer)     23 April 2016

Ex employer trying to sue

Hello Sir,

 

   I was working for a MNC company ( 1st jan 2004 - 23 aug 2014). I resigned from this company on 23rd Aug 2014 and they paid all my dues and everything thing was okay, I never signed any contract with them about working in same field or joining any competitor . I informed them as well that i will join a company abroad.  My ex company is a 100% subsidiary of a foreign company and they sell machines and spares.

      Now I live abroad not in India. My family have a business of buying same brand old machines from other countries and sell in India. I helped Financially my family to start this business.Now my ex employer serves a notice at my home in Inda and threatening me that I working against the interests of the company by selling machines and spares of same brand. They mentioned they can sue me and my act can atract 7 year of impersonment under IPC.

     There is another point that after I left my company (aug 2014). Another employee left the company and Joined the same company abroad ( sep2015) as me but through his own contact ( does it matters even if i helped him). Now my ex employer stated that i lured him and this is againts the company policy so they want to sue me.

 

   Is already 1 year and 8 months i am working abroad and live abroad. Please guide me if this act by my ex employer is legal, And how to deal with it? Can my ex employer hold me my work even without any contract?

yours sincerely 

ABC



Learning

 9 Replies

Sumit   23 April 2016

While joining u accepted the co plolicies so came into implied contract. Normally while working for gainful employment, co does not allow parrall business in similer activities. For ex working in Bank and selling LICc policy from home (prohibited).

Kumar Doab (FIN)     23 April 2016

You have posted that:

 

"My family have a business of buying same brand old machines from other countries and sell in India. I helped Financially my family to start this business.Now my ex employer serves a notice at my home in Inda and threatening me that I working against the interests of the company by selling machines and spares of same brand. "

 

When was this business started: while you were in employment  or later when you left employment?

 

When this business started selling machines of said employer: while you were in employment  or later when you left employment?

 

Is the owne of this business an authorized stockist/dealer? While appointing as dealer was owner asked to declare if anyone from business family is in employment of establishment (your employer)?

 

Your family or anyone can do anything to earn their livelihood.

 

Although you have stated that you have not signed any contract, such clauses ( Non Compete/Non Disclosure/Non Solicitation/confidentiality/Trade secrets etc)can be part of appointment letter, offer letter, service rules regulations stated in appointment letter/service conditions.

hence all docs be examined in detail by an able counsel specializing in such matters and fitting reply to the notice be supplied under proper acknowledgment.

 

 

 

JustAdvisor (IT)     23 April 2016

non compete clauses are in some cases upheld and in most cases struck down under section 27 of Indian Contract Act. Nevertheless the non compete clause may apply to you and not your family members who are free to conduct any business as long as it is legal. in my personal opinion the employer may be just trying to scare you off, but then again - engage a paid counsel :)

Gagandeep (Service Engineer)     23 April 2016

Hello Sir,

 

  Thank you so much for you advices, I really appreciate that.  Actually the business was started after i left. It was started in Jan 2015. They are not really stockiest they just buy machines from china and sell in India or use these machines for domestic job work if some one wants to buy they sell it.There are many other people who do that in the same city.

     I signed my appointment letter at the date of Joining Jan2004. There was not any specific terms and conditions in that letter for not doing same business or Working as competitor or for trade secrets  after the resign or even there was no non compete contract or what so ever. I feel my ex employer is picking on because a lot of his employees are leaving company because they are getting better options, he tries to blame me for that.

   As I been outside India, do i need to reply to this legal notice which is sent by post to my home address in India? 

Kumar Doab (FIN)     23 April 2016

You might have given the address.

If yes, the employer has sent the notices at your last known address.

Let all docs be examined in detail by an able counsel specializing in such/labor/service matters and if your counsel opines and you agree,fitting reply to the notice be supplied under proper acknowledgment.

Rest is upto you.

NANDKUMAR B SAWANT (ADVOCATE./LAWYER)     24 April 2016

SIR,KINDLY NOTE THAT.1.

1. YOU HAVE ALREADY LEFT PREVIOUS COMPANY AND ALL YOUR DUES ARE FULLY SETTLED BY THE SAID COMPANY.

2. KINDLY NOTE THAT YOU CHECK YOU OFFER AND APPOINTMENT LETTER ISSUED BY SAID COMPANY AND CHECK IF ANY CLAUSE REGARDING THE FACTS MENTIONED BY YOU .

3. BUT YOU NEED NOT WORRY AS ANY COMPANY IF THEY HAVE ANY OBJECTIONS AGAINST ANY EMPLOYEE , THEY WILL NOT RELEASE HIS DUES AND ARREARS OF SALARY AND OTHER DUES. AND AS YOUR COMPANY HAS ALREADY RELEASED YOUR DUES , YOU CAN JOIN ANY COMPANY OF YOUR CHOICE. AS YOUR PREVIOUS CONTRACT OF EMPLOYMENT WITH PREVIOUS COMPANY  IS OVER . AND BE CONFIDENT AND DO NOT BOTHER ABOUT SAID NOTICE . YOU MAY SEND A STRONG REPLY TO SAID LEGAL NOTICE THROUGH EXPERT LAWYERS AND DENY ALL ALLEGATIONS AND WARN THEM TO WIDRAW THE SAID NOTICE WHICH IS SENT WITH MALAFIED INTENTIONS TO EXTRACT FINANCIAL GAIN AND JUST FOR HARASSMENT. SO GOOD LUCK.

N.B.SAWANT.,M.COM.LL.B., ADVOCATE HIGH COURT.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     24 April 2016

Persons leaving one company and joining another doing business in the same field is very common. In fact the other company would want you only because the experience gained by you in the previous company will be useful to them. Generally by contract or otherwise an ex-employee should not pass on trade or manufacturing secrets etc from one company to the other. You say that you were a 'service engineer' presumably with your previous employer. If you were in the marketting field you could have client/customer list of your previous employer. There are two ways by which your ex-employer can take action. (1) going through court etc.(2) using their influence with your present employer. You have to be careful about the latter and not worry about the former.

Kumar Doab (FIN)     24 April 2016

You have informed the past employer that you shall be working abroad.

You have posted that it is your family that is running the business and you have helped them financially (on or off record).

 

Your counsel may opine to tender a fitting reply to the notice.

 

Finally it shall be your call to defend your interest in any manner as deemed fot to your at your end.

 

Consult an able counsel and show all record and give inputs for a considered opinion.

 

Gagandeep (Service Engineer)     24 April 2016

I am really thankful and Appreciate all your priceless advices. Now I am more confident and can dedicide my future action comfortably.

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