Dear Yogita
Despite the clause in the contract that the employee will not join the competitor that clause is unenforceable as that hits the employee's fundamental right to earn him livelihood in a job which he can perform only in his related field. You cannot even prosecute him if there are some ideas that he has taken from the company. You can definitely take some action against him if it is proved that he has copied confidential data and is using it against your company to the benefit of the competitor. See Daljeet Titus case of the Delhi High Court. However that is cumbersome to prove and involves the police and the raid to gather evidence.
I suggest dont worry about the joining but be careful about the confidential information henceforth and try for some ways to protect them and not have the officers take them out of the office premises.
From India, Delhi
Despite the clause in the contract that the employee will not join the competitor that clause is unenforceable as that hits the employee's fundamental right to earn him livelihood in a job which he can perform only in his related field. You cannot even prosecute him if there are some ideas that he has taken from the company. You can definitely take some action against him if it is proved that he has copied confidential data and is using it against your company to the benefit of the competitor. See Daljeet Titus case of the Delhi High Court. However that is cumbersome to prove and involves the police and the raid to gather evidence.
I suggest dont worry about the joining but be careful about the confidential information henceforth and try for some ways to protect them and not have the officers take them out of the office premises.
From India, Delhi
Dear Yogita
Currently I am fighting a similar case in Pune Court wherein the company from which few employees joined another company has slapped a case for loss of business to the tune of tens of crores of rupees. You can certainly initiate a legal action against the individual employee and if your company management is certain of loss of business or loss of profit even, your company can also decide to file a suit in the court of competent jurisdiction against such "poaching" company. If you need any further advice please feel free to call me on my cell No. 09822394170.
Regards & wish you all the best in your venture.
From India, Mumbai
3Currently I am fighting a similar case in Pune Court wherein the company from which few employees joined another company has slapped a case for loss of business to the tune of tens of crores of rupees. You can certainly initiate a legal action against the individual employee and if your company management is certain of loss of business or loss of profit even, your company can also decide to file a suit in the court of competent jurisdiction against such "poaching" company. If you need any further advice please feel free to call me on my cell No. 09822394170.
Regards & wish you all the best in your venture.
From India, Mumbai
Hay all,
You cannot punish somebody for joining competitor.... restricting someone for doing any "legal job" (a job which is not illegal) is unconstitutional.
You can sue him only on the grounds of
1) Non complying Notice period.
2) Breach of confidentiality (If you have any substantial evidence)
other than this your case will not stand in the court of Law...
and if at all you file a case on him for any unreasonable grounds then there is chance that he can file a counter case for Malicious prosecution on you guys...
if you need any further guidance, feel free to call me....
From India, Mumbai
You cannot punish somebody for joining competitor.... restricting someone for doing any "legal job" (a job which is not illegal) is unconstitutional.
You can sue him only on the grounds of
1) Non complying Notice period.
2) Breach of confidentiality (If you have any substantial evidence)
other than this your case will not stand in the court of Law...
and if at all you file a case on him for any unreasonable grounds then there is chance that he can file a counter case for Malicious prosecution on you guys...
if you need any further guidance, feel free to call me....
From India, Mumbai
Dear Tapan,
We have a non- compete and non- disclosure agreement in our company which also says that the employee will not join any of our company competitor for 5 years after leaving our company( for any reason)
In the lieu of the above the employee also has to submit an undated cheque or 6 months gross salary in the name of the company, so that in case the employee violates the gareement, company can use thuis cheque to cover losses.
do you think this is valid?? will such a thing stand in the court of law.. please advise.
Regards
Mitali
From India, Pune
We have a non- compete and non- disclosure agreement in our company which also says that the employee will not join any of our company competitor for 5 years after leaving our company( for any reason)
In the lieu of the above the employee also has to submit an undated cheque or 6 months gross salary in the name of the company, so that in case the employee violates the gareement, company can use thuis cheque to cover losses.
do you think this is valid?? will such a thing stand in the court of law.. please advise.
Regards
Mitali
From India, Pune
Hi, I agree with ASHOKs views and even I am of the viewpoint. But still if you can hold his/her final settlement dues if any. Also have a word with your legal consultant.
From India, Mumbai
From India, Mumbai
Hi dear...
Thanks everyone for your different views...
Actually i am also little confused in this.. form your point of view you all are correct. even i agree. but why we can not do anything? I do understand that every coin has two sides. but if this is the way things are going on then i suppose we all would be in trouble by some time..doing copy & paste is different thing and taking the orders is different things...
Well lets see wt can we do from our side...
Keep writing your views so that i can get more idea.
Thanks,
Yogita
From India, Mumbai
Thanks everyone for your different views...
Actually i am also little confused in this.. form your point of view you all are correct. even i agree. but why we can not do anything? I do understand that every coin has two sides. but if this is the way things are going on then i suppose we all would be in trouble by some time..doing copy & paste is different thing and taking the orders is different things...
Well lets see wt can we do from our side...
Keep writing your views so that i can get more idea.
Thanks,
Yogita
From India, Mumbai
Hi,
I have gone thru all the coments posted on this thread. I find some of the comments funny, entertaining, unprofessional and very amature lacking subject knowledge.
From India, Pune
I have gone thru all the coments posted on this thread. I find some of the comments funny, entertaining, unprofessional and very amature lacking subject knowledge.
- It is not true that any thing written on stamp paper and signed by both the parties is legally tenable. HR professionals are in habit of putting some clauses in the appointment letter, which only increase the weight of the appointment letter but can not be enforced legally.
- Once employee resigns from the organisation he is free to join the employer of his choice and no one can stop him. Any clause or agreement or bond to that effect can not be enforced legally.
- Every employer prefers to employ the person from the competitor and what is wrong in that. You get the readymade material having relevant skills, experience plus you have a market advantage.
- Mind you, employment is also a market, a free market ! and you can not have ristrictions in choosing a right employer like you have liberty to choose your soap and toothpaste.
- Ms. Yogita are you not employing candidates from your competitors? same way your competitor has right to employ your ex employees.
- If you feel your employees should not join competition then make sure you are better than them. Make sure that you have better work conditions, keep your employer satisfied and engaged so that they will not leave you and rather your competitors employees will join you.
- Whenever any employee leaves the company he carries with him the body of business knowledge with him and no one can avoid this. But if you feel he may carry some sensitive information, technology then make sure that you have ways to protect them. have your technology / process registered under copyrights and patents.
- There is one solution to problem of employee often changing the jobs within few companies leading to avoidable attrition. For example lot of employees of Tata Motors and Maruti Udyog might be jumping jobs. In case both these management feels it necessary and agrees, then they can have a clear understanding that they will not employ each others employees. These kind of arrangements are very much in practice and they are well publisised among the employees. Hence employee always knows that, I can never join XYZ company with whose management my employer has a understanding.
From India, Pune
Mr.K.Ravi the employees problem regaring the requirement of cds and usbs can be solved by the IT Deptt.they can request and take the datas in the harddisk under their supervision.This is in practise in my company thus i can givea surety of its success.
From India, Mumbai
From India, Mumbai
Dear Yogita
In this case you can not do anything . The stipulation in the appointment letter which you mention, is not tenable legally and bad in law. You will surely not get any legal relief.
Regards
Jai
From India
In this case you can not do anything . The stipulation in the appointment letter which you mention, is not tenable legally and bad in law. You will surely not get any legal relief.
Regards
Jai
From India
thanks a lot for summarizing the points ,, yogita look
when employee joined ur company he bought n used knowledge from his earlier co,,
then in ur co he gained some additional knowledge,
and now he is using full knowledge in his new co,
so ur company contribution is only some little and not whole
Look here the details of candidate,,,
Company,,, Experience Knowledge when leaving
A (1st Co) A A
B (2 Co) A + B A + B
C (3 Co) A + B + C A + B + C
so if u see the employee in question who left has knowledge collected from all three companies so how u think ur co alone is responsible for his knowledge
grow up
From India, Pune
when employee joined ur company he bought n used knowledge from his earlier co,,
then in ur co he gained some additional knowledge,
and now he is using full knowledge in his new co,
so ur company contribution is only some little and not whole
Look here the details of candidate,,,
Company,,, Experience Knowledge when leaving
A (1st Co) A A
B (2 Co) A + B A + B
C (3 Co) A + B + C A + B + C
so if u see the employee in question who left has knowledge collected from all three companies so how u think ur co alone is responsible for his knowledge
grow up
From India, Pune
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