Legal Question in Employment Law in India

Hi,

(Indian law) Please help me with some clarifications as to the non competence agreement. My previous employer made no mention about such clause in the offer letter. In april 2016, they made an addendum and added a non competence clause which was communicated to us by an email ( the clause implied that the employees cannot join the competitors for atleast 1 yr and 6 months) After i completed my notice with this employer...i got a good opportunity with the competitor ( in an altogether different profile, not similar to that i was working on earlier). However, my previous company has now sent a notice to me stating that my exit formalities will not be completed untill i pay them 1 lac rupees (almost the half of my annual package) as damages. My relieving letter shall not come and they can take a temporary order from the court to restrain me from working with the competitor. I cannot afford paying rs 1 lac ( also i used to work on a small associate position) Please help me with legal advice whether i shall approach the court through a legal advisor or i will have to lose my new job. Thank you in advance.


Asked on 10/15/16, 2:28 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

15.10.2016

Dear Sir / Madam,

You are only liable to abide by the rules and regulations of the Company as long as you are in service. The Company has no locus standi or legal right to put any restrictions on what you can or cannot do once you leave the Company. You should inform your new employer about this stance of the previous Company because if they support you, the previous Company cannot do any damage to you. As far as your dues are concerned, you may remind them to pay up and settle your dues immediately else straightaway lodge a Police complaint for "cheating" (IPC 420).

Regards,

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Answered on 10/15/16, 4:28 am


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