• Employee diverting our business to competitor during employment

Employee working in our concern as a branch head position in Tirupur area. He purposefully join hands with our competitor and diverting our business during the course of employment. Due to this activity, our company facing heavy losses. Now he tender his resignation and absconding himself from the job. Now we came to know that he joined the competitor company. I need to send a legal letter to him. 

please draft and advise the same.
Asked 4 years ago in Labour

4 answers received in 2 hours.

Lawyers are available now to answer your questions.

9 Answers

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.

 

T Kalaiselvan
Advocate, Vellore
90183 Answers
2506 Consultations

You may contact an advocate either of this forum or outside to get the specific task done for you on the terms of the chosen advocate. 

T Kalaiselvan
Advocate, Vellore
90183 Answers
2506 Consultations

You can engage any lawyer on this website for issue of legal notice 

 

2) if he has diverted business during course of employment you can sue employee and claim damages for loss suffered by you 

Ajay Sethi
Advocate, Mumbai
99982 Answers
8162 Consultations

 

Engage a local lawyer for drafting legal notice to employee 

Ajay Sethi
Advocate, Mumbai
99982 Answers
8162 Consultations

Thanks for your appreciation 

Ajay Sethi
Advocate, Mumbai
99982 Answers
8162 Consultations

That will be better option because you may have to give suitable instructions to the lawyer to issue the legal notice based on the terms and conditions of the employment and other reasons which you can apprise the lawyer in person. 

T Kalaiselvan
Advocate, Vellore
90183 Answers
2506 Consultations

Have you issued offer letter?

G.RAJAGANAPATHY 

High Court of Madras 

Rajaganapathy Ganesan
Advocate, Chennai
2300 Answers
8 Consultations

You can send a legal notice to him in above case. 

Sir, If you need any further assistance.You can approach me through Kaanoon or LinkedIn.

Prashant Nayak
Advocate, Mumbai
34663 Answers
249 Consultations

- You can lodge an FIR against that employee , if there is provision that an employee cannot work for others 

- However, before lodging an FIR you can warn him after sending a legal notice , and thereby can also claim damages for the said loss .  

Mohammed Shahzad
Advocate, Delhi
15844 Answers
243 Consultations

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer