Dear all,
One of my friend was working in an private organisation as a 'R&D Manager'. About a year ago, he has resigned from his company due to his personal issues. While resigning, he has signed a Bond on notarised stamp paper that he will not leak or pass any confidential information about the company and company's products and also he will not join any competitor. The bond was signed by him under the pressure of getting of his dues. Thereafter, he started his own consultancy wherein he is supporting one of the company, which is not the competitor but developing the same products on different technology. The new company is developing this product not in the view to sale this product but to promote their parts in this product. Now the previous company has issued him the notice that he has leaked the information and now they will take the legal action against him in Criminal or Civil proceeding in court of law.
Are there any limitations on any individual for doing bussiness after signing such bond? Need suggestions.
From India, Mumbai
2One of my friend was working in an private organisation as a 'R&D Manager'. About a year ago, he has resigned from his company due to his personal issues. While resigning, he has signed a Bond on notarised stamp paper that he will not leak or pass any confidential information about the company and company's products and also he will not join any competitor. The bond was signed by him under the pressure of getting of his dues. Thereafter, he started his own consultancy wherein he is supporting one of the company, which is not the competitor but developing the same products on different technology. The new company is developing this product not in the view to sale this product but to promote their parts in this product. Now the previous company has issued him the notice that he has leaked the information and now they will take the legal action against him in Criminal or Civil proceeding in court of law.
Are there any limitations on any individual for doing bussiness after signing such bond? Need suggestions.
From India, Mumbai
An agreement signed while in service will cease to exist when he leaves the establishment. Moreover, an agreement restraining one from joining a competitor will not be maintainable. Certainly, every employee( employee means a person in the service) is expected to maintain secrecy of business being transacted by the company for which there is no need of any notorised agreement. Now your friend is out of the organisation. Imposing the same responsibility even after quiting the company would not be justified.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Agree with Madhu both contract are not maintainable post you leave the organization.
Agreement itself are in loopholes mostly this contract are singed at time of joining the organization not at time of exit.
From India, Hyderabad
Agreement itself are in loopholes mostly this contract are singed at time of joining the organization not at time of exit.
From India, Hyderabad
Dear Sir/Madam,
Thanks for the reply. I am attaching the Agreement copy and notice given for your reference. I have deleted the image of stamp paper, names, signature and address of all in the attachments.
The agreement did not point to any specific confidential information and is general in nature. Further, Company is not the only manufacturer of the products which they are manufacturing. So can company issue such notices.
Within what time limit should notices should be replied?
Regards,
Megha.
From India, Mumbai
Thanks for the reply. I am attaching the Agreement copy and notice given for your reference. I have deleted the image of stamp paper, names, signature and address of all in the attachments.
The agreement did not point to any specific confidential information and is general in nature. Further, Company is not the only manufacturer of the products which they are manufacturing. So can company issue such notices.
Within what time limit should notices should be replied?
Regards,
Megha.
From India, Mumbai
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