Non-compete Clause in Employment Agreements in India:
Hi All - This is with reference to the non-compete clause in employment agreements: If there is a clause and post this, also if the employee leaves the organization and joins the competition - what are the possible deterrents "employer" can have to stop or restrict the employee from leaving the organization? (While I am fully aware that this is prohibited by the court of law - my question is what can an employer do to stop the employees from going to the competition).
From United States
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3Hi All - This is with reference to the non-compete clause in employment agreements: If there is a clause and post this, also if the employee leaves the organization and joins the competition - what are the possible deterrents "employer" can have to stop or restrict the employee from leaving the organization? (While I am fully aware that this is prohibited by the court of law - my question is what can an employer do to stop the employees from going to the competition).
From United States
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Dear Ms. Pooja K Singh,
Legal remedies are not available to restrain employees from joining a competition. You may click the following link to refer to the ruling by the Delhi High Court:
https://www.citehr.com/571397-delhi-...n-compete.html
In the recent past, the famous editor of WION, Ms. Palki Sharma Upadhyay, was restrained by her employer, Zee TV Network, from joining the competition. Again, the Delhi High Court set aside the restraint imposed by Zee TV. Click the following link to refer to the news:
https://www.newslaundry.com/2022/11/...join-network18
Thanks,
Dinesh Divekar
From India, Bangalore
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Legal remedies are not available to restrain employees from joining a competition. You may click the following link to refer to the ruling by the Delhi High Court:
https://www.citehr.com/571397-delhi-...n-compete.html
In the recent past, the famous editor of WION, Ms. Palki Sharma Upadhyay, was restrained by her employer, Zee TV Network, from joining the competition. Again, the Delhi High Court set aside the restraint imposed by Zee TV. Click the following link to refer to the news:
https://www.newslaundry.com/2022/11/...join-network18
Thanks,
Dinesh Divekar
From India, Bangalore
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Thank you, Dinesh. My query is regarding what measures an employer can take to discourage employees from considering leaving for a competitor while they are still working with us.
From United States
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From United States
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Hi,
The possible moves from the employer are:
1) Holding/delaying the relieving letter/full and final settlement.
2) Sending the employee some legal notice to harass the individual primarily, such as claiming that the work was not completed, important client data was taken, unauthorized leave resulted in company losses, etc.
3) Serving official communication to the competitor stating that the employee has not been officially relieved.
4) Sharing negative comments during background verification, if any.
From India, Madras
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The possible moves from the employer are:
1) Holding/delaying the relieving letter/full and final settlement.
2) Sending the employee some legal notice to harass the individual primarily, such as claiming that the work was not completed, important client data was taken, unauthorized leave resulted in company losses, etc.
3) Serving official communication to the competitor stating that the employee has not been officially relieved.
4) Sharing negative comments during background verification, if any.
From India, Madras
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Thank you, V.M. Lakshminarayanan, this is something I was looking for as an insight. One more suggestion required - these are all post leaving during the tenure. What all can be done? Thank you for your help.
From United States
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From United States
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Dear Mr. V.M. Lakshminarayanan,
You have provided a list of the counts on which an employee can be harassed. Well, gentleman, we, the members of this forum, must see the situation dispassionately, and we should treat the members of this forum and the employee in question equally. Just because an HR professional has approached this forum does not mean that we should suggest something that could lead to injustice against the employee.
Your suggestions go against the principles of rationality. The ease with which you have recommended giving negative comments in BGV is shocking. What will you achieve by potentially damaging someone's career?
I have even observed paid consultants refusing to give unfair suggestions to their clients. We, the members of this forum, cannot be biased toward a fellow member or an employee working in his/her company. Therefore, let us stand for justice and fair play.
For Ms. Pooja K Singh: Employee retention is always a challenge for HR professionals who adhere to the principles of HR Management. Employee retention depends on employee engagement. Create a career path for an employee so that he/she can grow. Secondly, you must have read about "self-actualization needs" in Maslow's Hierarchy of Needs. Try fulfilling the self-actualizing needs of the employee.
Thanks,
Dinesh Divekar
From India, Bangalore
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You have provided a list of the counts on which an employee can be harassed. Well, gentleman, we, the members of this forum, must see the situation dispassionately, and we should treat the members of this forum and the employee in question equally. Just because an HR professional has approached this forum does not mean that we should suggest something that could lead to injustice against the employee.
Your suggestions go against the principles of rationality. The ease with which you have recommended giving negative comments in BGV is shocking. What will you achieve by potentially damaging someone's career?
I have even observed paid consultants refusing to give unfair suggestions to their clients. We, the members of this forum, cannot be biased toward a fellow member or an employee working in his/her company. Therefore, let us stand for justice and fair play.
For Ms. Pooja K Singh: Employee retention is always a challenge for HR professionals who adhere to the principles of HR Management. Employee retention depends on employee engagement. Create a career path for an employee so that he/she can grow. Secondly, you must have read about "self-actualization needs" in Maslow's Hierarchy of Needs. Try fulfilling the self-actualizing needs of the employee.
Thanks,
Dinesh Divekar
From India, Bangalore
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Dear Dinesh,
Appreciate your response and revert on this sensitive topic. I myself will NOT go and opt for any of the measures which we have discussed. I am just trying to see what deterrents can be opted for by the employers. You must also recognize the fact that I may not even consider deterrents as I am very employee-friendly. While trying to explore the Non-Compete clause in its entirety, I was just reviewing what employers can do. Hence, this query.
Thank you for your inputs, both Mr. Dinesh and Mr. V.M. Lakshminarayanan.
Best Regards,
Pooja Singh
From United States
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Appreciate your response and revert on this sensitive topic. I myself will NOT go and opt for any of the measures which we have discussed. I am just trying to see what deterrents can be opted for by the employers. You must also recognize the fact that I may not even consider deterrents as I am very employee-friendly. While trying to explore the Non-Compete clause in its entirety, I was just reviewing what employers can do. Hence, this query.
Thank you for your inputs, both Mr. Dinesh and Mr. V.M. Lakshminarayanan.
Best Regards,
Pooja Singh
From United States
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Dear Mr. Dinesh,
The question of Ms. Pooja Kssingh is, "What are the possible deterrents employers can have to stop or restrict the employee from leaving the organization?" I have just listed the possible moves of the employer in such a scenario who have invested crores of money for their business. Nowhere in my post have I mentioned such moves are right or wrong, nor have I provoked her to follow them. Obviously, employers cannot initiate unfair practices without proper proof in place, and employees will legally defend against such moves.
I have come across a similar scenario wherein senior-level employees formed a new company itself after having a secret deal with the client of the employer, and the employer was unable to take any action as they found out very late after those employees were officially relieved. Nowadays, even employees are acting very smart.
I have been working in HR for the past 26+ years in different sectors like hospitality, construction, BPO, etc. Whatever I'm sharing here are my thoughts (many gained through practical experience) on the discussion topic. It is up to the member whether to take or leave it.
Ms. Pooja Kssingh: What you can do during the tenure of the employment is assure the employee with better compensation/position and counsel them on how your company is superior to competitors, future business plans, volume of projects in the pipeline, etc. You can also subtly caution them about the non-compete clause.
From India, Madras
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The question of Ms. Pooja Kssingh is, "What are the possible deterrents employers can have to stop or restrict the employee from leaving the organization?" I have just listed the possible moves of the employer in such a scenario who have invested crores of money for their business. Nowhere in my post have I mentioned such moves are right or wrong, nor have I provoked her to follow them. Obviously, employers cannot initiate unfair practices without proper proof in place, and employees will legally defend against such moves.
I have come across a similar scenario wherein senior-level employees formed a new company itself after having a secret deal with the client of the employer, and the employer was unable to take any action as they found out very late after those employees were officially relieved. Nowadays, even employees are acting very smart.
I have been working in HR for the past 26+ years in different sectors like hospitality, construction, BPO, etc. Whatever I'm sharing here are my thoughts (many gained through practical experience) on the discussion topic. It is up to the member whether to take or leave it.
Ms. Pooja Kssingh: What you can do during the tenure of the employment is assure the employee with better compensation/position and counsel them on how your company is superior to competitors, future business plans, volume of projects in the pipeline, etc. You can also subtly caution them about the non-compete clause.
From India, Madras
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The best deterrent for preventing employees from quitting is that the employer should treat employees fairly, providing opportunities to learn and advance while working for the company. Deterrent is a wrong term in this post. It should be a part of the work culture of respecting the employee while achieving the desired output. Negative measures are many but should never be adopted. Eventually, if someone wants to quit after fulfilling their obligations, let them go happily and in a timely manner. An exit interview will provide the company with feedback on the reasons for the exit. The point is an employee may not leave because of the company alone; they may have other reasons as well. Therefore, be receptive and prompt in relieving employees who wish to depart, but also make an effort to honestly obtain genuine feedback.
From India, Pune
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From India, Pune
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Dear Ms. Pooja,
Can you please clarify what an Employment Agreement is and what the Terms & Conditions of the Agreement are? If an employee joins a competitor, can you initiate any action against the employer who has recruited the employee? Your query is not based on facts but merely on apprehension. Employees can leave the services as per the Terms & Conditions of the Appointment/Agreement.
"Grass is greener on the other side. Bonded labor is prohibited."
Hypothetical questions can only receive hypothetical answers.
From India, New Delhi
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Can you please clarify what an Employment Agreement is and what the Terms & Conditions of the Agreement are? If an employee joins a competitor, can you initiate any action against the employer who has recruited the employee? Your query is not based on facts but merely on apprehension. Employees can leave the services as per the Terms & Conditions of the Appointment/Agreement.
"Grass is greener on the other side. Bonded labor is prohibited."
Hypothetical questions can only receive hypothetical answers.
From India, New Delhi
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