Hi Volks,
I want to create a new policy for my employees, wherein after their resignation or termination, they are not allowed to join a company of the same nature, and they cannot even start their own company with the same type of work. It would be really helpful if anyone could share some content for the same.
Regards,
Mukul Chopra
From India, New Delhi
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I want to create a new policy for my employees, wherein after their resignation or termination, they are not allowed to join a company of the same nature, and they cannot even start their own company with the same type of work. It would be really helpful if anyone could share some content for the same.
Regards,
Mukul Chopra
From India, New Delhi
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Hi Mukul,
You need to review your thoughts on making such a policy. As you cannot bind them once they resign or disengage from work. How do you dictate their terms after they quit your organization?
From India, Hyderabad
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211You need to review your thoughts on making such a policy. As you cannot bind them once they resign or disengage from work. How do you dictate their terms after they quit your organization?
From India, Hyderabad
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Pursuing any profession or avocation, or being gainfully self-reliant financially and otherwise, is one of the fundamental rights of we the people of India, guaranteed by our Constitution and is enforceable. Please refer to Articles 14, 19, 21, etc., in our Constitutional Rights, and you and your employer shall be enlightened in your own safeguard. Let's all be law-abiding, not law-breaking, Indian nationals.
Reminder Restated by Kritarth Team
28.2.2019
From India, Delhi
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Reminder Restated by Kritarth Team
28.2.2019
From India, Delhi
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In addition to the guidance given by seniors, you should understand that a company's policy should be in line with public policy as outlined in various laws and the Constitution. Failing to do so may render it legally invalid.
B. Saikumar
HR & Labor Relations Consultant
From India, Mumbai
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B. Saikumar
HR & Labor Relations Consultant
From India, Mumbai
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Dear Mukul,
What you are looking for is called a NON-COMPETE POLICY. However, to make it enforceable, it must be confined to a reasonable geographical limit and time limit. If a person has worked in an industry for a considerable time, the person gains industry-specific experience that cannot be taken from him. To safeguard yourself from competition, you may set a geographical limit of, say, 2-3 kilometers. You may establish timelines stating that a particular person may not open a company or work for a competitor within 2-3 kilometers of the workplace, let's say for 6 months. Also, the enforceability of these restrictions would depend on the industry you are in. For example, in the hotel industry, one may add a restriction that you will not open a restaurant/hotel or work for one for a specific time and geographical limit, but in the IT sector, it may not be enforceable. It is essential to be reasonable about it. I hope this clears your doubts.
Thank you.
From India, New Delhi
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What you are looking for is called a NON-COMPETE POLICY. However, to make it enforceable, it must be confined to a reasonable geographical limit and time limit. If a person has worked in an industry for a considerable time, the person gains industry-specific experience that cannot be taken from him. To safeguard yourself from competition, you may set a geographical limit of, say, 2-3 kilometers. You may establish timelines stating that a particular person may not open a company or work for a competitor within 2-3 kilometers of the workplace, let's say for 6 months. Also, the enforceability of these restrictions would depend on the industry you are in. For example, in the hotel industry, one may add a restriction that you will not open a restaurant/hotel or work for one for a specific time and geographical limit, but in the IT sector, it may not be enforceable. It is essential to be reasonable about it. I hope this clears your doubts.
Thank you.
From India, New Delhi
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