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Did you ever sign a non-compete or non-solicit? This is the first question a court would consider. If you did, were those terms drafted and implemented in a manner that a court will respect? Many judges will overlook unfair or unreasonable contractual language especially as it relates to competing with a former employer. Next, if there is nothing in w...
W Network
caDear Sir/Madam, I have been working in a Chennai based MNC for the past 6 years. After two years of joining, I was sent abroad for training purpose (but handled live projects and not much training). Before departure, I have signed a contract with the employee stating that, I have to serve 3 years after my return to Chennai or if breached, a sum of Rs. 10 Lakhs to be paid as compensation. The contract was in just plain A4 sheet and not in a stamp paper. I duly signed and went to abroad. After two years I returned, I served 18 months in the same company, but got a better offer from another company, which is a competitor. I submitted my resignation, but my boss and HR did not agreed. So I formally sent an email after serving my notice period and left the company without any kind of relieving letter and settlements. Now I am working with the competitor. I received an email from the previous company HR stating that, they came to know I work with a competitor and asked me to confirm if this is true or not. If not replied in seven days, they would take necessary actions. I am worried and need legal advice on how to proceed further. What sort of things will I have to face and I am very much afraid that, I may spoil my name and career in the current organization. Please advice me on how to proceed and its quite urgent, since I have only 7 days to reply.
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W Network
caDid you ever sign a non-compete or non-solicit? This is the first question a court would consider. If you did, were those terms drafted and implemented in a manner that a court will respect? Many judges will overlook unfair or unreasonable contractual language especially as it relates to competing with a former employer. Next, if there is nothing in writing stopping you from competing, you can freely do so as long as you do not misuse any confidential information. There is one further exception. In limited cases, employees who are in key roles can be characterized as a "fiduciary" by a court. In this scenario, courts can impose postemployment restrictions on competing or soliciting clients, even in the absence of a contractual clause. Ordinary sales representatives can be fiduciaries but only in exceptional circumstances.
Thus have a thorough check on Contract signed and ensure that no clauses are infringed other than this no employer can restrain an employee from getting employed in a rival company as a non-disclosure agreement would be signed and no information of the previous employer is miss-used burden of proof lies with the employer to prove the losses incurred if any.
Signing on a plain A4 paper is a serious negligence as it can turn serious consequences, in current scenario you have to prove that it was fraudulently obtained and company had pressurized to have it on a blank sheet and still burden of proof is with the employee.
'Get a Wazzeer' to have a lawyer do vetting of your employement contract in a day.
over 3 years ago
View answer
Dear Sir/Madam, I have been working in a Chennai based MNC for the past 6 years. After two years of joining, I was sent abroad for training purpose (but handled live projects and not much training). Before departure, I have signed a contract with the employee stating that, I have to serve 3 years after my return to Chennai or if breached, a sum of Rs. 10 Lakhs to be paid as compensation. The contract was in just plain A4 sheet and not in a stamp paper. I duly signed and went to abroad. After two years I returned, I served 18 months in the same company, but got a better offer from another company, which is a competitor. I submitted my resignation, but my boss and HR did not agreed. So I formally sent an email after serving my notice period and left the company without any kind of relieving letter and settlements. Now I am working with the competitor. I received an email from the previous company HR stating that, they came to know I work with a competitor and asked me to confirm if this is true or not. If not replied in seven days, they would take necessary actions. I am worried and need legal advice on how to proceed further. What sort of things will I have to face and I am very much afraid that, I may spoil my name and career in the current organization. Please advice me on how to proceed and its quite urgent, since I have only 7 days to reply.
-
W Network
caDid you ever sign a non-compete or non-solicit? This is the first question a court would consider. If you did, were those terms drafted and implemented in a manner that a court will respect? Many judges will overlook unfair or unreasonable contractual language especially as it relates to competing with a former employer. Next, if there is nothing in writing stopping you from competing, you can freely do so as long as you do not misuse any confidential information. There is one further exception. In limited cases, employees who are in key roles can be characterized as a "fiduciary" by a court. In this scenario, courts can impose postemployment restrictions on competing or soliciting clients, even in the absence of a contractual clause. Ordinary sales representatives can be fiduciaries but only in exceptional circumstances.
Thus have a thorough check on Contract signed and ensure that no clauses are infringed other than this no employer can restrain an employee from getting employed in a rival company as a non-disclosure agreement would be signed and no information of the previous employer is miss-used burden of proof lies with the employer to prove the losses incurred if any.
Signing on a plain A4 paper is a serious negligence as it can turn serious consequences, in current scenario you have to prove that it was fraudulently obtained and company had pressurized to have it on a blank sheet and still burden of proof is with the employee.
'Get a Wazzeer' to have a lawyer do vetting of your employement contract in a day.
over 3 years ago
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