Legal Question in Business Law in India

I am an employee of one of the PSUs in India. i want to switch job due to some personal reasons. The company is asking me to sign a bond which says that:

" I can't join any of its past, present, and future business associates, competitors, vendors, partners, suppliers, customers, technology partners, financiers etc., for a period of two years from the date of relieving from the service. "

And

My PF and other accrued benefits will not be settled till a period of two years"

"If i fail to comply to the above rule then i have comply to this rule then i have to suffer major deductions from my accrued benefits owned by the company.

Please let me know if these rules are legally justified ? and also suggest me what actions should i take.


Asked on 10/26/10, 10:30 am

2 Answers from Attorneys
Devansh Bhardwaj Devansh Bhardwaj

My friend according to me it is not justifiable. But even then I would like to see all the papers and details of yours and the P.S.U. such as service rules appointment letter etc.

FOR FURTHER DISCUSSIONS IF ANY YOU CAN CONTACT ON 9415109404 OR ON [email protected]

DEVANSH BHARDWAJ

ADVOCATE

LUCKNOW

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Answered on 10/26/10, 8:27 pm

As regards the first portion of the bond that is " you can not work with any of such people " is some how justifiable as the company needs to safeguard its interest too. But generraly these conditions are signed at the time of appointment and not at the time of leaving the company.

As regards the second part that is PF release after 2 years , that is not at all justifiable and liable to be objected.

You can raise your objections on such conditions and give a write up on the same to the company .

Regards

Ph; 9811617186

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Answered on 10/27/10, 1:49 am


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