If the terms of employment prohibit the employee from diverting your business to the competitor then you may issue a legal notice to the employee show causing that why proper action as per law cannot be taken agaisnt him for breach of the conditions of employment.Non compete clause
Make sure that the employment offer letter has a non compete clause.
A non-compete clause or agreement is a contract wherein an employee promises not to enter into competition of any kind with an employer after the employment period is over.
These agreements may also be called a "covenant not to compete" or a "restrictive covenant." Non-competes ensure the employee will not use information learned during employment to start a business and compete with the employer once work is over. It also ensures the employer keeps its place in the market.
- A non-compete agreement legally binds a current or former employee from competing with an employer for some period of time after employment ceases.
- Under such an agreement, the employee must not reveal any trade secrets learned during employment.
- These contracts outline how long the employee must refrain from working with a competitor, the geographic location, and/or the market.
If you would like to issue a legal notice and initiate further legal action against the erring employee you may consult a local advocate and proceed as per the suggestions made on all such further issues.