Hello, I recently resigned and left a company within 3 months of joining due to internal implementation framework conflict. The company did clear my dues within 1 day of leaving but sent me the appointment letter with non-compete clause only after I left the company but it doesn't have my signature. I'm afraid they'll try to threaten me under the non-compete clause which I did not even sign at the time of joining.The contract they sent me on email was 1 day after my leaving the company, and it is one-sided means it doesn't have my signature. Can they follow me up on non-compete for working in the same industry in a different company?
No, as your are not bound by the agreement as you have not signed it.
Even if they take action the court shall reject same as the appointment letter and contract of employment.should be given and signed on day of joining after employement they cannot give you terms.
Any agreement in restraint of trade is void under section 27 of contract act
2) you have not signed non compete agreement
3) it is not binding upon you
Hello Good afternoon ,
I would like to advice you to not to worry as you did not sign the agreement , so they cannot enforce it .They cannot take any steps in future also because at the time of employment you didn't sign the confidentiality agreement or any agreement which has such clause in it (as stated by you) .
I have dealt a similar case , so you have nothing to worry about .
In case you face any difficulty you are open to consult me .
Have a nice day .
Regards
Swarupananda .
If you have not signed any agreement then the same is non binding on you.
They can not enforce the terms of the contract, which has not been signed by you.
Do not worry about the same.
Regards
Is non-compete really ever applicable? How binding is it? I have seen my previous companies getting after ex-employees with legal notice but they were never acted against by the court. The court ruled in favour of ex-employee as a mode of earning for his living when he stared a company in the same domain & technology.
These are hardly enforced by the court.
Depends on the facts of the case, ez-employee should not use the information of the company for his self gains.
That is why I am saying there is no need to worry in your case.
Regards
Yes it is applicable and if signed will have a binding effect on the employee .
In your case i see no reason to worry if you haven't signed it at the time of your employment.
Regards.
Yes it is applicable. It is binding the employer in breach of same has to provide damages though the clause cannot be unreasonable.
That depends on clause and work the court interpret in case of serious breaches there are cases where court provide damages though contract act 27 s specified s no agreement on restrain of trade can be made though reasonable restriction for business can be there, see explanation.
Section 27 in The Indian Contract Act, 1872
27. Agreement in restraint of trade, void.—Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void. —Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void." Exception 1.—Saving of agreement not to carry on business of which goodwill is sold.—One who sells the goodwill of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the goodwill from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business. 16 [***]
Non compete clause is void
2) you are at liberty to join competitor or start your own company after you have resigned from the organisation
The non complete clause is a possibility to enforce but it should be agreed by both the parties and should be part of appointment letter and should be signed reciprocation from you.
The appointment letter is contestable but will not stand due to lack of signature and any electronic acceptance.
If you have not given consent to this agreement by way of signing the same, there's n way they may impose this non-compete agreement on you.
To the best of my understating, since this has not been signed by you, they should not be following up with you on this.
In any case, a restrictive no-compete is hit by section 27 of the Indian Contract Act and hence, looses its legal strength.
To enforce a non-compete is extremely onerous task.
This can be easily fought on the ground that the contract was voidable at your instance. Non-compete clauses are not always maintainable. But you may not need to go that far. Your appointment itself is voidable at your instance.
It does not stand anywhere as it has been given after living, and no one can act according to post conditions.
The non compete clause especially when you are not employed any more, is not legally enforceable.
Section27 of contract act. will prevail to nullify such issues.
You are right that such clauses are not valid in law and are not enforceable in court of law.
You can ignore the notice.