Legal Question in Employment Law in India

I joined company on 6th Feb, an old reputated company with around 3000 cr turnover and 1000 cr profit. I was not given appointment letter and told I will be given at the time of joining. On joining they served me appointment letter which had non compete agreement as below.

In order to protect the companys confidential and proprietary information to which I shall have access to, especially at my level of seniority, I agree and confirm that for a period of two years from date of termination or cessation of my employment agreement, I shall not, without written permission of the Company, engage myself in any company, firm or concern and / or be concerned in and / or set up or abet, the setting up of, any business, profession of avocation, which is similar to and/or directly or indirectly competes wtih the business of the company and/or any of its companies and / or firms associated with the company.

Incidently, I am in same line of business for 16 years (total 19 years experience) as the company value proposition is (they are in this from 6 years) and this clause does not help me because I am getting similar assignment.

I told HR Manager, that the above clause is very open ended and Indian court does not hold this valid, he agreed but said this is done for all employees from junior to senior and he cannot change this for one individual.

What are my option, in case company says they cannot have without compete agreement signing, can I claim damges from them for incovenience and uncertainity put on me due to their first not sending such thing in advance and to what I can claim.

Indian society provide Patent, Confederatio of Indian Industry and Nasscom etc to influence govt policy, why they want to put these clause which are not valid in court and cause people trouble.

Please guid.


Asked on 2/24/15, 12:00 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

24.05.2015

Dear Sir / Madam,

Further to the concerns you have already raised with the HR, you should very politely ask them that if you leave the Company and you are not supposed to take up any other assignment which directly or indirectly competes with the business of the Company, whether in that event is the Company paying you salary for the two years period that you will be sitting at home doing nothing. Factually, it is none of the Company's business what you should be doing or should not be doing after you have quit the Company. You are free to engage in any business activity, assignment or engagement of your own free will, irrespective of whether you are indirectly or directly competing with the Company.

Regards,

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Answered on 2/24/15, 5:53 am


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