I joined company on 6th Feb, 2015 an old reputated company with around 3000 cr turnover and 1000 cr profit. I was not given appointment letter and told I will be given at the time of joining. On joining they served me appointment letter which had non compete agreement as below.
In order to protect the companys confidential and proprietary information to which I shall have access to, especially at my level of seniority, I agree and confirm that for a period of two years from date of termination or cessation of my employment agreement, I shall not, without written permission of the Company, engage myself in any company, firm or concern and / or be concerned in and / or set up or abet, the setting up of, any business, profession of avocation, which is similar to and/or directly or indirectly competes wtih the business of the company and/or any of its companies and / or firms associated with the company.
Incidently, I am in same line of business for 16 years (total 19 years experience) as the company value proposition is (they are in this from 6 years) and this clause does not help me because I am getting similar assignment.
I told HR Manager, that the above clause is very open ended and Indian court does not hold this valid, he agreed but said this is done for all employees from junior to senior and he cannot change this for one individual.
What are my option, in case company says they cannot have without compete agreement signing, can I claim damges from them for incovenience and uncertainity put on me due to their first not sending such thing in advance and to what I can claim.
Indian society provide Patent, Confederatio of Indian Industry and Nasscom etc to influence govt policy, why they want to put these clause which are not valid in court and cause people trouble.
Please guid.
From India, Mumbai
In order to protect the companys confidential and proprietary information to which I shall have access to, especially at my level of seniority, I agree and confirm that for a period of two years from date of termination or cessation of my employment agreement, I shall not, without written permission of the Company, engage myself in any company, firm or concern and / or be concerned in and / or set up or abet, the setting up of, any business, profession of avocation, which is similar to and/or directly or indirectly competes wtih the business of the company and/or any of its companies and / or firms associated with the company.
Incidently, I am in same line of business for 16 years (total 19 years experience) as the company value proposition is (they are in this from 6 years) and this clause does not help me because I am getting similar assignment.
I told HR Manager, that the above clause is very open ended and Indian court does not hold this valid, he agreed but said this is done for all employees from junior to senior and he cannot change this for one individual.
What are my option, in case company says they cannot have without compete agreement signing, can I claim damges from them for incovenience and uncertainity put on me due to their first not sending such thing in advance and to what I can claim.
Indian society provide Patent, Confederatio of Indian Industry and Nasscom etc to influence govt policy, why they want to put these clause which are not valid in court and cause people trouble.
Please guid.
From India, Mumbai
Rolta Industires Limited is a fraud company. It traps its employee like anything. It does not give appointment letter beforehand and gives only on date of joining and it contains a very 2 year not competent clause which is loosely worded. Even HR agrees it is not valid in court.
It develops its product by purposely bidding low in all its line of business Defence, Battalefield Mangement System, OneView or Oracle ERP etc and then convert into product and (laugh) make it is intellectual property.
K K Singh CMD of company is son of doctor who chose engineering to differentiate on mothers advice, came out of cyclic steel plant business in Indore and after coming to Mumbai he has become a big chor of Knowledge of client and industry defense leaders and converting into (laugh) intellectual property and sell it!!
It has one of worst HR practices and puts new joinee in a trap.
From India, Mumbai
It develops its product by purposely bidding low in all its line of business Defence, Battalefield Mangement System, OneView or Oracle ERP etc and then convert into product and (laugh) make it is intellectual property.
K K Singh CMD of company is son of doctor who chose engineering to differentiate on mothers advice, came out of cyclic steel plant business in Indore and after coming to Mumbai he has become a big chor of Knowledge of client and industry defense leaders and converting into (laugh) intellectual property and sell it!!
It has one of worst HR practices and puts new joinee in a trap.
From India, Mumbai
Without commenting on anything else, by adding new non- compete clause which is although contrary to section 27 of Contract Act and thus void, the company has virtually rescinded its earlier offer of appointment. You may repudiate the agreement and you may sue the company for damages in terms of the apex court decision in Kasturi Lal v Union of India decided in 1959.
Thanks
Sushil
From India, New Delhi
221Thanks
Sushil
From India, New Delhi
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NON-COMPETE AGREEMENT ADDENDUM.doc
Delhi High Court Ruling on Non-compete Agreement.pdf