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abhi (sw engg)     20 April 2014

Restriction on working in same domain for 1 yr after quittin

I work in an travel domain IT firm (eg. yatra), which has a clause in the offer letter that when I quit from the company, I am not allowed to work in their competitors in the same domain (eg. cleartrip) for 1 whole year.

My query is that can a company put such restriction on his employees after resignation, is it a valid clause?

Note - Current company haven't invested any money or resource in providing any kind of skill improvement  training.



Learning

 4 Replies

mahavir singh (ADVOCACY)     20 April 2014

Yes upto certain extent they may be right but it depends upon in what conditions you have left the job. For more call09910657998 mahavir singh advocate.

Kumar Doab (FIN)     20 April 2014

It is a global fad now to insert such clauses hence employers insert just for the heck of it.

The Indian courts have consistently been declining to enforce Non Compete Clauses/agreements as it hits the right to earn livelihood and provisions of Indian Contracts Act.

You have already clarified that the company has not spent any amount on training.

The training if at all any provided by company should be something that adds to qualification of employee or some extra ordinary skills…………………………………….Any training that is required to manage the counters of the company should be provided by company without any cost to employee.

However its shall be appropriate to show the documents to a competent and experienced labor consultant/service lawyer and proceed under expert advise of your lawyer. The lawyer has seen all record and has analyzed the inputs can advise you the best.

The conditions at the time of separation does not matter.

If the employer resorts to intimidation your lawyer would know how to handle it.

 

In the meantime you may find the attachments as relevant.


Attached File : 497520916 417759075 validity of employment bonds.pdf, 497520916 background paper.pdf downloaded: 171 times

abhi (sw engg)     20 April 2014


Thanks Kumar Doab for your clarification. I also share the same view that no such clause will sustain in the court of law.

In addition detailed offer letter having such clause was delivered after 50 days of joining. leaving no choice but to accept it by default.

Earlier before joining company had only sent a 2 page offer letter without any such condition on the basis of which I accepted the offer.

Kumar Doab (FIN)     20 April 2014

It is good that you have feel of nuances of the matter. Employee should be properly informed. A properly informed employee can defend his interest much better.

You are in which state and Redg. Office of the establishment is in which state?

How many employees are employed in it?

What was the date on appointment letter (Actual Date of appointment or it was willfully  backdated) and did you affix actual date of receipt by you below your signatures?

 If it was backdated and if you received it in date (50 days after date of appointment) you may create noise! Although you had the opportunity to decline to accept this clause alone in writing and could write declinature on the original copy issued to you with carbon impression on your copy. The service conditions inserted in appointment letter drafted by employer or communicated subsequently are negotiable and employee has full right to reject or accept or ask to negotiate! As in a contract till accepted in writing the conditions may not be deemed as accepted and have become enforceable.

Otherwise also T&C that violate law/statues are void to that extent.

The employees, employee’s representatives, employees unions, trade unions can negotiate service conditions. Trade Unions are willing to embrace employees from al sectors.

Designation alone does not decide a worker shall be covered as ‘Workman’ as in ID Act, as ‘Employee’ as in Shops and Commercial Establishments Ac or not! Your lawyer can opine you are covered or not!

There is a provision of ‘Work’s Committee’ and it is an authority. The president of the committee is on rotation from employees and employer.

Read; The Industrial Disputes Act, 1947

CHAPTER II: AUTHORITIES UNDER THIS ACT

 

3. Works Committee


Attached File : 497543474 works committe is authority under id act.pdf downloaded: 145 times
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