Legal Question in Employment Law in India

I have a question : A person working in a US IT company in India more than 4 years without any performance issue. Company new management wanted to take new people as per their own preference and forcing existing employee to resign and go. This company has a track record of doing this to lot of employee in India with out proper warning or compensation. They are also try to force the employee to sign a document stating that he should not work in similar industries in next 12 months. I would like to know what are the way the employee can protect its interest in this case. the same company is giving adequate compensation in Us and other countries but not in India.


Asked on 10/14/09, 6:44 am

1 Answer from Attorneys
Vivek Mapara Vivek N. Mapara

Private Companies are free to have their own policy fixing the service conditions and regulations for its employees. The only prohibition is that the contract if executed, stipulating terms and conditions of the employee, should not be de hors the law. Other then that a private company can have its own policy, even if it discriminates between employees, then also there is no law prohibiting such discrimination. For termination, you would have clause in contract of giving prior notice or for compensation, such clause would govern your termination notice compensation etc. If such a clause is not there, then under common law remedy, you can sue company for termination you wihtout proper notice and compensation.

Now so far so negetive clause of not working in any other company for 12 months is concerned, the same is bad and de hors the law, and such conditions is void. so irrespective of such condition, you can work in any company you like after u resign from your present company.

If you have any other query, you may feel free to contact.

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Answered on 10/14/09, 1:33 pm


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