Dear Sir,
Please guide me on whether the appointment letter needs to be approved by any government authority. Our management also wishes to include a clause in the appointment letter stating that after resigning from the organization, the employee should not join any competitor organization for at least 6 months. Kindly advise if we can include this clause.
With Regards,
Ms. Dhanya
From India, Mumbai
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4Please guide me on whether the appointment letter needs to be approved by any government authority. Our management also wishes to include a clause in the appointment letter stating that after resigning from the organization, the employee should not join any competitor organization for at least 6 months. Kindly advise if we can include this clause.
With Regards,
Ms. Dhanya
From India, Mumbai
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To my understanding, there is no specific provision in the law, but standard letters should be issued in compliance with standing orders. These standing orders should be pre-approved by a competent certifying body, referred to as the "appropriate government".
From India, Gurgaon
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From India, Gurgaon
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Dear Dhanya,
Obtaining approval from any government authority for appointment letters is not required. No employer can insist on any employee joining a competitor company. Whatever skills the employee has will be used in the next/new company; hence, the employer cannot insist on joining a competitor company.
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Obtaining approval from any government authority for appointment letters is not required. No employer can insist on any employee joining a competitor company. Whatever skills the employee has will be used in the next/new company; hence, the employer cannot insist on joining a competitor company.
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Hello Ms. Dhanya,
Your query regarding the appointment letter(s) being approved by the government authority isn't clear and doesn't make sense. Could you please elaborate regarding the reasons for this query? That could help the members understand things from the exact context.
Regarding adding the point 'not to join any of our competitor organizations', this is called a Non-Compete clause in HR parlance, which is quite common nowadays in many companies. However, there have to be very valid and legally tenable grounds/reasons to introduce this clause in the appointment letter. If not, then the company is bound to face legal problems in the long run if any employee goes to court. I would suggest you involve your company's legal counsel while deciding this issue.
Regards,
TS
From India, Hyderabad
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Your query regarding the appointment letter(s) being approved by the government authority isn't clear and doesn't make sense. Could you please elaborate regarding the reasons for this query? That could help the members understand things from the exact context.
Regarding adding the point 'not to join any of our competitor organizations', this is called a Non-Compete clause in HR parlance, which is quite common nowadays in many companies. However, there have to be very valid and legally tenable grounds/reasons to introduce this clause in the appointment letter. If not, then the company is bound to face legal problems in the long run if any employee goes to court. I would suggest you involve your company's legal counsel while deciding this issue.
Regards,
TS
From India, Hyderabad
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Dear Sir,
Thank you for your valuable reply and suggestions. Our management wishes to include a clause prohibiting the individual from joining any of our competitor organizations in the appointment letter. Therefore, they require it to be signed and approved by the government authority.
Regards,
Dhanya
From India, Mumbai
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Thank you for your valuable reply and suggestions. Our management wishes to include a clause prohibiting the individual from joining any of our competitor organizations in the appointment letter. Therefore, they require it to be signed and approved by the government authority.
Regards,
Dhanya
From India, Mumbai
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Hello Dhanya,
As I mentioned earlier, including the said clause is per se possible, but it has to be ensured that the reasons are legally justifiable and valid. Companies in some domains/sectors take a hit when such clauses are introduced. Usually, such a clause is introduced only for critical positions (in Sales, R&D, etc.)—usually senior-level ones—where the chances of the company losing business/secrets are high if an employee leaves to join a competitor. Implementing this across-the-board will be tough and impractical. What if employees begin to leave due to this reason—will the management be ready for such a scenario? What is your company into?
Also, I don't understand the logic behind getting the 'approval by Government authority'—please elaborate on the reason(s). Why should the government approve or disapprove any appointment letters of a private company, in the first place? As far as I know, there isn't such a mechanism at all.
Regards,
TS
From India, Hyderabad
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As I mentioned earlier, including the said clause is per se possible, but it has to be ensured that the reasons are legally justifiable and valid. Companies in some domains/sectors take a hit when such clauses are introduced. Usually, such a clause is introduced only for critical positions (in Sales, R&D, etc.)—usually senior-level ones—where the chances of the company losing business/secrets are high if an employee leaves to join a competitor. Implementing this across-the-board will be tough and impractical. What if employees begin to leave due to this reason—will the management be ready for such a scenario? What is your company into?
Also, I don't understand the logic behind getting the 'approval by Government authority'—please elaborate on the reason(s). Why should the government approve or disapprove any appointment letters of a private company, in the first place? As far as I know, there isn't such a mechanism at all.
Regards,
TS
From India, Hyderabad
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Dear Seniors, After how many days/months we need to provide the appointment letter. There is some specific time for giving the appointment letter.please give your suggestions. Regards Khushbu
From India, Delhi
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From India, Delhi
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How do you expect somebody to join the company without a formal appointment order? At least a one-page letter giving details of designation, probation/training period, gross salary, length of service/retirement age needs to be given. The new joinee is expected to sign a copy and give it back to you as an acceptance, and this paper will be filed in his personal file.
Regards,
D. BALAJI
From India, Bangalore
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Regards,
D. BALAJI
From India, Bangalore
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