Dear Seniors,
I have a question:
I am working for a multinational company (MNC) and I have signed a Non-disclosure and Non-compete agreement on a white paper. It states that I cannot work with any of the company's competitors in India after the conclusion or termination of my employment, and I am also restricted from working with any competitor for a period of one and a half years. The agreement stipulates that in the event of a breach, I will be liable to pay one crore rupees as damages. The agreement was signed by me, my employer, and two witnesses.
Despite not receiving a formal job offer letter, Provident Fund (P.F.), or medical benefits, and no deductions from my salary, my employer has only informed me through email that I am hired as labor. However, I am actively involved in overseeing the company's operations.
My salary is sent to me via Western Union.
Respected individuals,
Is this agreement legally binding or void?
Am I allowed to seek employment with other companies or competitors?
Can my employer take legal action against me?
I would appreciate your prompt responses and suggestions.
Thanks and regards.
From India, Hamirpur
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I have a question:
I am working for a multinational company (MNC) and I have signed a Non-disclosure and Non-compete agreement on a white paper. It states that I cannot work with any of the company's competitors in India after the conclusion or termination of my employment, and I am also restricted from working with any competitor for a period of one and a half years. The agreement stipulates that in the event of a breach, I will be liable to pay one crore rupees as damages. The agreement was signed by me, my employer, and two witnesses.
Despite not receiving a formal job offer letter, Provident Fund (P.F.), or medical benefits, and no deductions from my salary, my employer has only informed me through email that I am hired as labor. However, I am actively involved in overseeing the company's operations.
My salary is sent to me via Western Union.
Respected individuals,
Is this agreement legally binding or void?
Am I allowed to seek employment with other companies or competitors?
Can my employer take legal action against me?
I would appreciate your prompt responses and suggestions.
Thanks and regards.
From India, Hamirpur
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Request you to please help us understand some key issues regarding your situation:
Salary paid through WUMT: Where are you located? - Please state the country and city if possible. (Your profile location says Hamirpur) Are you employed by an MNC's Indian subsidiary or by a legal entity of the MNC abroad?
Please note, the "white paper" you have mentioned is a non-issue completely. Even verbal contracts, if proven, are valid ones. However, the validity of the paper will be dependent on its jurisdiction, applicability to a situation, terms of the contract, and procedural issues. Contracts/bonds of these kinds are generally bad in law in India, but there are layers to the problem.
I would urge you to provide more details of your case. And also read up on innumerable discussions on this topic already on this forum.
From India, Mumbai
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144Salary paid through WUMT: Where are you located? - Please state the country and city if possible. (Your profile location says Hamirpur) Are you employed by an MNC's Indian subsidiary or by a legal entity of the MNC abroad?
Please note, the "white paper" you have mentioned is a non-issue completely. Even verbal contracts, if proven, are valid ones. However, the validity of the paper will be dependent on its jurisdiction, applicability to a situation, terms of the contract, and procedural issues. Contracts/bonds of these kinds are generally bad in law in India, but there are layers to the problem.
I would urge you to provide more details of your case. And also read up on innumerable discussions on this topic already on this forum.
From India, Mumbai
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Yes, sir. I used to get my salary through WUMT, sometimes by hand when the Chairman of the company is here in India. If they are not here in India, they used to pay me by WMUT.
Currently, I am located in Vadodara, India. My company is registered in Mumbai.
I am employed by a subsidiary of an American company, but I don't have any appointment letter.
Sir, please guide me as per the laws.
Thanks & Regards.
From India, Hamirpur
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Currently, I am located in Vadodara, India. My company is registered in Mumbai.
I am employed by a subsidiary of an American company, but I don't have any appointment letter.
Sir, please guide me as per the laws.
Thanks & Regards.
From India, Hamirpur
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Does your NDA/NCA mention your terms of service? Have you signed any other papers? Why did you sign an NDA/NCA without an appointment letter/job contract? What is the nature of the job involved? Too sketchy a case for most of us to be specific with our advice.
If you are looking for generic advice, please use the search tool to read up about similar problems.
From India, Mumbai
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If you are looking for generic advice, please use the search tool to read up about similar problems.
From India, Mumbai
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Respected Sir,
The letter I have signed does not mention the term of service. Although the email that my company sent me states a term of 2 months for my service in the company. However, the letter I have signed only indicates the obligations or conditions for the breach of the contract. Even that letter does not show the designation I am working in or the duration of my employment. Only the email indicates that I am working as a laborer for a period of 2 months, after which the company will review my performance and may extend the contract. Despite my two months of service being completed, they have not extended my contract in writing or via email, but I am still working.
The nature of the work involves checking the quality of cigars, instructing trainees on cigar production, designing boxes, overseeing exports, attending company meetings, and sending daily reports to the U.S.
Sir, please guide me based on your insights on the situation.
Thanks & Regards.
From India, Hamirpur
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The letter I have signed does not mention the term of service. Although the email that my company sent me states a term of 2 months for my service in the company. However, the letter I have signed only indicates the obligations or conditions for the breach of the contract. Even that letter does not show the designation I am working in or the duration of my employment. Only the email indicates that I am working as a laborer for a period of 2 months, after which the company will review my performance and may extend the contract. Despite my two months of service being completed, they have not extended my contract in writing or via email, but I am still working.
The nature of the work involves checking the quality of cigars, instructing trainees on cigar production, designing boxes, overseeing exports, attending company meetings, and sending daily reports to the U.S.
Sir, please guide me based on your insights on the situation.
Thanks & Regards.
From India, Hamirpur
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Prima facie, the contract seems to be one-sided and hence bad in law. There are many cases in law that set a precedent regarding the unjustified blocking of one's career opportunities through NDAs/NCAs that have been struck down by the courts.
Let's wait for some of the legal experts to comment on this.
From India, Mumbai
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Let's wait for some of the legal experts to comment on this.
From India, Mumbai
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Thank you very much for your valuable suggestions; I appreciate them. The chairman of the company included the following statement in her email: "However, should our work in India terminate, we would assist you with further employment possibilities."
Should I consider this as a void contract? In other words, should I start looking for opportunities at other companies or competitors?
Thank you & Regards.
From India, Hamirpur
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Should I consider this as a void contract? In other words, should I start looking for opportunities at other companies or competitors?
Thank you & Regards.
From India, Hamirpur
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