Legal Tip of the Day
Poaching of Employee-can not be checked
We can not restrain our employee to join the competitor. The freedom of changing employment for improving service conditions is vital and important right of an employee which cannot be restricted or curtailed.
The negative covenant clause in the service and employment contracts cannot be used against an employee. No restraint can be imposed on any employee that after he has left the job or he has been terminated as it goes against the very grains of section 27 of the Contract Act.
In a case , the Delhi High Court has to clarify that such contracts are unenforceable, void and against the public policy. In fact, what is prohibited by law cannot be permitted by courts. The employer, a bank, in the grab of confidentiality, cannot be allowed to perpetuate forced employment on an employee with it on the ground that he or she had access to and possessed confidential information and the business data during the course of employment and his or her joining another employer will cause and such the court has rightly rejected Bank's application by holding that neither there is a prima facie case built up by the Bank nor established any balance of convenience or irreparable injury to justify the grant of injunction against the employee in quitting the employment.
Regards
Deepak Miglani
Legal Point Foundation
09215514435
For any query:-
www.legalpoint.in
www.deepakmiglani.com
From India, Coimbatore
733Poaching of Employee-can not be checked
We can not restrain our employee to join the competitor. The freedom of changing employment for improving service conditions is vital and important right of an employee which cannot be restricted or curtailed.
The negative covenant clause in the service and employment contracts cannot be used against an employee. No restraint can be imposed on any employee that after he has left the job or he has been terminated as it goes against the very grains of section 27 of the Contract Act.
In a case , the Delhi High Court has to clarify that such contracts are unenforceable, void and against the public policy. In fact, what is prohibited by law cannot be permitted by courts. The employer, a bank, in the grab of confidentiality, cannot be allowed to perpetuate forced employment on an employee with it on the ground that he or she had access to and possessed confidential information and the business data during the course of employment and his or her joining another employer will cause and such the court has rightly rejected Bank's application by holding that neither there is a prima facie case built up by the Bank nor established any balance of convenience or irreparable injury to justify the grant of injunction against the employee in quitting the employment.
Regards
Deepak Miglani
Legal Point Foundation
09215514435
For any query:-
www.legalpoint.in
www.deepakmiglani.com
From India, Coimbatore
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