legal help needed


rishabh.asthana

Well-Known Member
Adept
Hi everyone,


i am currently working for an organization which is a major player in payment processing industry. When i joined this particular organization i was made to sign an document (not on a stamped paper) which mentioned that i can not join any organization which is related to my current company's field of operation.

Now i am getting a far better offer from a company which is also in the same field and my current organization is not ready to raise my salary (even during March no salary revision took place which i think is a norm).

I need your expert advise on whether my current organization can prosecute me if i accept the offer from the other organization.

I also came to know that they are drafting a new agreement which would prohibit me from joining any organization remotely related to finance industry (involving banks). Is this legal ?
 

chiragsthakur

Well-Known Member
Adept
Unless and until you haven't signed a bond mentioning service to your present organization for x years, you are eligible to leave your present organization without any norms, just the notice period might vary depending on your organizations norms.
 

rishabh.asthana

Well-Known Member
Adept
thanks chirag...i also did some research on it and found this

It is well established by the various case laws decided in the courts of India that ‘non compete’ clauses that extend after the termination of employment are not enforceable in India. It is stated clearly in section 27 of the Indian Contract Act, 1872 that agreements in restraint of trade are void. In the garb of confidentiality, an employer cannot be allowed to perpetuate forced employment, as it is hit by Section 27.

Non Compete Clauses and The Indian Contract Act, 1972 - Business Law Articles - Law, Lawyers, Advocates, Law Firms,Legal Help, Legal Experts,Judgements,Law Help, Indian Lawyers
 

Arv90

Well-Known Member
Adept
Most companies sign bonds with freshers.
Make sure you haven't signed any such agreement. If no then you are your boss. Most company bonds do not abide you to any constitutional law afaik unless you cheat or do something illegal. Breaking a bond means you will have to pay extra perks to the company to terminate the bond.
 

sharktale1212

Well-Known Member
Adept
IMO people are moving away from topic. Its not a bond ie cant leave the company for x years which is employed by loads of IT companies.
What he is talking about is a non-compete clause ie he cant pursue the same field as his employer if he tries to jump the ship. Its something high tech/risk companies employ to avoid brain drain/risk to future operations.

@OP - My understanding is it shouldnt be valid until it talks about a monetary risk from employer side ie expenses on training and such. Better check with a civil lawyer cause a signed paper - with/without stamp paper might prove problematic.
 

asingh

Well-Known Member
Staff member
They cannot do any thing. It is just anti-poaching. IF your new organization (where you want to go), also has anti-poaching signed with your current organization, then you cannot be hired, they will not even pick you up. The work around for this, is to mutually resign, and wait 30 days with NO job. Then your new organization can take you.

But if your new organization is not on anti-poaching with your current, resign and give your notice period. And then join.

See these tactics:

1. 90/60 day notice period.
2. Anti poaching agreements.
3. Legal ramification threats.

Are just methods to scare people from not resigning, and lowering company employee turnover. Ask your new organization if they have anti-poaching signed with your current one. IF NO, then do what I said above.
 

rishabh.asthana

Well-Known Member
Adept
there is no anti-poaching agreement between my current and future company. I will be joining them soon. I will be taking a huge hit in terms of designation but salary wise i will be getting my first hike (65 percent hike) in 2 years so its kinda important for me.
 

dinjo

Hell Yeah[Born Critic]
Veteran
The one way you can get yourself away from the firm is get yourself fired seriously it happens a lot in US
 

aercy

Well-Known Member
Adept
Dude, these are formal things they do but they themselves don't enforce it upon a employee leaving. Bindass change your job. I hope you didn't submit your original certificates or marksheets to them. Best of luck with your future.
 

soggy316

Well-Known Member
Adept
AFAIK all companies (at least what I have seen in soft engineering companies) have this, and only if you land up telling HR/management where you are switching to, then they can create problems. 90% of the time out of sight is out of mind as far as the company is concerned. This clause may be used against you only if you jump to a competitior and use your previous companies patented/exclusive designs or processes and they find out. That too it would need to be an exact copy of the exclusive design.
 

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