Dear seniors, My friend worked in a manufacturing concern, and he has not received his settlement after his resignation. He served for 8 years. While joining, no conditions were made, and after 5 years, they issued an order that he should not work in the same field of the company after resigning. Now he is working in a similar industry.
Question on Settlement and Non-Compete Clause
My question is, can they hold his settlement because of this reason? How should we proceed further?
Thank you.
From India, Pondicherry
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Question on Settlement and Non-Compete Clause
My question is, can they hold his settlement because of this reason? How should we proceed further?
Thank you.
From India, Pondicherry
Acknowledge(0)Amend(0)
Contractual Obligations and Final Settlement
If he has signed any contract, affidavit, or undertaking stating that he will not work in a similar company after resigning from this industry, then he has done wrong by taking a job in a similar company. However, the company does not have the right to withhold his final settlement dues unless there is a clause in the agreement allowing for this.
If there is no agreement or undertaking signed by the employee, an Office Order may not have legal standing to be used against the employee. In such a case, the company must return the employee's final dues to him, and he should claim them accordingly.
From Pakistan, Lahore
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2If he has signed any contract, affidavit, or undertaking stating that he will not work in a similar company after resigning from this industry, then he has done wrong by taking a job in a similar company. However, the company does not have the right to withhold his final settlement dues unless there is a clause in the agreement allowing for this.
If there is no agreement or undertaking signed by the employee, an Office Order may not have legal standing to be used against the employee. In such a case, the company must return the employee's final dues to him, and he should claim them accordingly.
From Pakistan, Lahore
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Full n final settlement.doc
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(Fact Checked)-The user's reply is mostly correct. The company cannot hold the final settlement if there was no agreement or undertaking signed by the employee restricting working in a similar industry. The user's advice aligns with the legal stance on this matter. (1 Acknowledge point)