Legal Question in Employment Law in India

my employee is leaving my firm and setting up his own firm with my contacts....can i prevent him from doing so......i have sole proprietorship firm


Asked on 4/24/12, 12:02 am

2 Answers from Attorneys

Santosh Dash Legal Consultant

do you have any restrictive agreement with that employee? Further even if you have, it may trigger competition act. So you dont have that option

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Answered on 4/24/12, 12:58 am
Fca Prashant Chavan Expert Edge LLP

25.04.2012

Dear Colleague,

Firm loyalty comes into play here.

Clients / customers that are loyal to your sole proprietory firm will continue to remain with you, irrespective of however hard your ex-employee tries to win over them. A few clients / customers who were directly interacting with your ex-employee without your interface, may initially join him / her to test the waters. It will remain a real challenge for your ex-employee to keep pace with the deliverables, because in case he / she is unable to meet client expectations in a short span of time, all your clients / customers who lent him / her the initial support will be forced to revert back to you.

You will then have the option of raising the fee / cost of your products or services to them.

You can mail me for further on-line legal advice at [email protected]

Regards,

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Answered on 4/25/12, 2:10 am


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