Dear Client,
Non-competent clause not maintainable and enforceable in India, so no legal action against you and complain to labor commissioner for release of F & F settlement.
Hi, After joining a company A, after 1 year they asked all employees to sign a non-competent contract. Which states that you cannot join any competitor company after 6 months from last day in office. Contract also has list of companies and a sentence that company is not limited to this list. After leaving from company A, I joined a company B which works in same domain but is not in the list in contract. Now, they are not giving full and final amount, relieving & experience letters, as HR said that I have joined a competitor company and might take legal action against me. Please suggest if they are right and I will not get fnf, letters and i might also get in trouble.
Dear Client,
Non-competent clause not maintainable and enforceable in India, so no legal action against you and complain to labor commissioner for release of F & F settlement.
Nothing doing, don't afraid if your resignation has been accepted you file an application before the Labour Department as such a contract is ultra virus of the constitution.
You can work in the competitor's firm after leaving the company and you cannot be restrained from doing so as that would amount to an agreement in restrain of lawful profession. But be sure to leave the company as per the rules and intimate them about the illegality of this particular clause by a competent lawyer
once you resign you are at liberty to join another organisation
2) under section 27 of contract act any agreement in restraint of trade is void
3)issue legal notice to company to pay your dues , issue you experience letter / relieving letter
4) you can file summary suit to recover your dues
Dear Sir,
Such clause is itself invalid in view of section 27 of Contract Act. Even if you go as per agreement you joined a company which is not in the exhaustive list. Either way you are in safe zone. Get issue legal notice if you want to recover arrears of salary etc.,
Dear Sir,
Kindly update about any clause stating that any other companies not listed but seems to be competent company in your Non-Competent contract, if so, there will be a issue.
No such declaration, then no issues.
Just go through the contract and find out.
See the list as per the agreement was not exhaustive and company work in same domain the company can claim dmages from you . So better you take step issue them notice for experience letter and full and final payment stating that company is under obligation to lay you your payment and you have not joined the company which is not listed in agreement. Though keep in mind company can take steps.
Further donot worry there is no trouble they can only file civil suit which can be contested.
No they are wrong it's just illegal, don't worry send them a legal notice to clear the same. Else Approach labour court
A 'Restraint of Trade' clause in a contract that is intended to not allow one party to practice a certain profession, trade or business is only valid under certain conditions of the given and is otherwise void as per Section 27 of The Indian Contract Act, 1872.
Employees that enter into a contract with an employer may agree to neither compete with the employer nor join a competitor during their term of the employment and/or a period after. A contract or part of a contract that is not valid makes the said clause or agreement itself void and it cannot be enforced in court of law. This limits parties to an extent, depending on the contract, in their ability to restrict certain practices of one party that may compete with the other party, despite their agreement.
Section 27 of the Act that makes a clause of certain intention void and allows it to be valid only when it meets the conditions to be considered as an exception. Courts are obligated to take into consideration the terms of the contract in each individual case and assess the case based on reasonableness, nature of circumstances, and even the nature and relation of the parties in this context. The following interrelated aspects of Non-Compete and Restraint of Trade clauses in employment contracts have been dealt with
You may issue a legal notice demanding F&F and other dues to you from the company,. let them give a reply denying the demands citing the said clause, you can approach court for relief and remedy on the above guidelines.
Hello
They are in breach of contract and hence you have a strong case. Send them legal notice and if they do not respond then file a case in the labour court.
Regards