• NDA agreement

Hi, I am working in a company from last 10 years as development engineer but now company is making pressure to sign NDA( non disclosure agreement) from me due to job unavailability in market.
This is small scale company with around 6 cr turn over annually and never makes the salary on time and not provide any good facility but due to covid pandamic I have to work here for some more time.

This boss is not paying us salary on time and no bonuses also because he only taking the advantage of covid pandamic.

If I signed NDA what are the possible threats to my career? Because they are going to make very strict point on it.

What will happen if I break the NDA in future?


Please give best suggestions ?

Thanks
Asked 4 years ago in Labour

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9 Answers

No NDA has any blanket applicability and mere signing it wold not cause problem in future in the event of termination from the job. 

Devajyoti Barman
Advocate, Kolkata
23663 Answers
538 Consultations

You have to worry abt NDA if you are working on some patentable technologies. 

 

NDA conditions are important to be looked into however usually NDA are not to worry about much. 

many NDA are only for third parties.

 

Further a company not able to pay on time might not be able to persue legally. 

 

Ankur Goel
Advocate, Bangalore
454 Answers

NDA not only obligates the parties from not disclosing the confidential information but also it provides legal remedies and penalties for any breach under the agreement such as injunction, indemnification including attorney fees.

 

2) Under section 406 of the Indian Penal Code, an employee can be held liable for criminal breach of trust if the employee is misusing or discloses the confidential information for his/ her benefit.

Ajay Sethi
Advocate, Mumbai
100049 Answers
8169 Consultations

This NDA is governed under the Indian Contract Act, 1872 even though the Act does not visualize NDA specifically, Indian Contract Act is the fundamental aspect of all contracts dealing with the basic obligations of the parties, offer and acceptance, breach, consideration, term, compensation, indemnification etc.

Also, for further validity and enforcement, it is always mandatory to have a stamp on NDAs.

NDAs are usually entered and signed between companies, individuals, entities, employees, start-ups, large corporations who are willing to start a new business or partnership relations, small-sized and medium-sized enterprises etc.

Employees are often required to sign the Non-Mutual Agreement, where only one party i.e. the employee shall be signing for not disclosing the confidential information.

These NDAs protect confidential information which usually includes trade secrets. As NDAs are legally binding, on account of breach one has to face legal penalties. 

 Under section 406 of the Indian Penal Code, an employee can be held liable for criminal breach of trust if the employee is misusing or discloses the confidential information for his/ her benefit.

As NDAs are legally binding, on account of breach one has to face legal penalties.

Also, under section 63 of the Indian Copyright Act, a civil proceeding is maintainable against the infringer.   

the NDA term depends upon the disclosure of confidential information to another party and if at all any of the Party wants to terminate the agreement due to any reason the same should be mentioned in the agreement that either of the party may terminate the agreement by giving notice to the other party.

NDA not only obligates the parties from not disclosing the confidential information but also it provides legal remedies and penalties for any breach under the agreement such as injunction, indemnification including attorney fees. 

T Kalaiselvan
Advocate, Vellore
90252 Answers
2509 Consultations

1. Once you sign NDA it ranks sacrosanct and inviolate.

2. There are no perceivable threats to your career due to signing of NDA. However, it will be binding on you once you sign it.

3. Breach of NDA is actionable in the hands of employer by filing a suit for damages and also a criminal case for cheating/criminal breach of trust,

Ashish Davessar
Advocate, Jaipur
30843 Answers
982 Consultations

Dear Sir,

1) Do not sign any agreement without properly going through all the terms and conditions given in the agreement.

2) The repercussions of signing any agreement can only be advised after perusal of the said agreement.

Thank you

 

Anik Miu
Advocate, Bangalore
11087 Answers
125 Consultations

Hey,

Perusal of the draft of the NDA is necessary to give appropriate advise. However, a Non-Disclosure Agreement is not fatal, unless you are involved in sharing data which is confidential. So, it shouldn't be a problem. A decision has to be taken based on your activities.

Later on you can in a worst case scenario contest the signature on NDA as being under undue influence but it will be along drawn legal battle. With regards to the problem of non-payment of salaries, you can send a legal notice but better to do it only when you have a back-up as things might become bitter. 

Sanjay Narayandas
Advocate, Hyderabad
103 Answers

- NDA is a contract between employer and the employee , where by the employer enter into a contract with the employee that the said employee will not disclose the confidential information and in the even of failure there may be penalty imposed and for breach the contract employee can be sued. 

- Hence NDA is governed by the India Contract Act, and the consents of the same is a bound for both the parties of contract.

- Further this NDA can be for the period of 1 to 10 years , and on breach of the same the employee can be booked under the offence as well. 

- Further , if you refused to signed the same , then the company may evaluate that you are not interested with the company . hence take decision accordingly. 

Mohammed Shahzad
Advocate, Delhi
15875 Answers
243 Consultations

Dear Sir

Nothing to worry you can sign and continue your job peacefully. If you do not sign then only problem arise. The employer cannot execute terms of NDA even if you violate.

Kishan Dutt Kalaskar
Advocate, Bangalore
6249 Answers
502 Consultations

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