I joined the company on 6th Feb 2015, an old reputable company with around 3000 crore turnover and 1000 crore profit. I was not given an appointment letter and was told I would receive it at the time of joining. Upon joining, they provided me with an appointment letter that included a non-compete agreement as follows:
In order to protect the company's confidential and proprietary information, to which I shall have access, especially at my level of seniority, I agree and confirm that for a period of two years from the date of termination or cessation of my employment agreement, I shall not, without the written permission of the Company, engage myself in any company, firm, or concern, and/or be concerned in, and/or set up or abet the setting up of, any business, profession, or avocation which is similar to and/or directly or indirectly competes with the business of the company and/or any of its associated companies and/or firms.
Incidentally, I have been in the same line of business for 16 years (total 19 years of experience) as the company's value proposition (they have been in this for 6 years), and this clause does not help me because I am getting a similar assignment.
I informed the HR Manager that the above clause is very open-ended, and Indian courts do not deem it valid. He agreed but mentioned that this is a standard practice for all employees, from junior to senior, and he cannot alter it for one individual.
What are my options if the company insists on the non-compete agreement signing? Can I claim damages for the inconvenience and uncertainty caused by their failure to provide such information in advance? What can I claim?
Indian society provides Patent, Confederation of Indian Industry, and NASSCOM to influence government policy. Why do they include these clauses that are not valid in court and cause trouble for people?
Please guide.
From India, Mumbai
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In order to protect the company's confidential and proprietary information, to which I shall have access, especially at my level of seniority, I agree and confirm that for a period of two years from the date of termination or cessation of my employment agreement, I shall not, without the written permission of the Company, engage myself in any company, firm, or concern, and/or be concerned in, and/or set up or abet the setting up of, any business, profession, or avocation which is similar to and/or directly or indirectly competes with the business of the company and/or any of its associated companies and/or firms.
Incidentally, I have been in the same line of business for 16 years (total 19 years of experience) as the company's value proposition (they have been in this for 6 years), and this clause does not help me because I am getting a similar assignment.
I informed the HR Manager that the above clause is very open-ended, and Indian courts do not deem it valid. He agreed but mentioned that this is a standard practice for all employees, from junior to senior, and he cannot alter it for one individual.
What are my options if the company insists on the non-compete agreement signing? Can I claim damages for the inconvenience and uncertainty caused by their failure to provide such information in advance? What can I claim?
Indian society provides Patent, Confederation of Indian Industry, and NASSCOM to influence government policy. Why do they include these clauses that are not valid in court and cause trouble for people?
Please guide.
From India, Mumbai
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Rolta Industries Limited is a fraudulent company. It traps its employees like anything. It does not provide an appointment letter beforehand; instead, it gives it only on the date of joining, which contains a very loosely worded 2-year non-competent clause. Even HR agrees that it is not valid in court.
The company develops its products by intentionally bidding low in all its lines of business, such as Defence, Battlefield Management System, OneView, or Oracle ERP, and then converts them into products, claiming them as intellectual property.
K K Singh, CMD of the company, is the son of a doctor who, on his mother's advice, chose engineering over the family's cyclic steel plant business in Indore. After moving to Mumbai, he has gained a reputation for appropriating the knowledge of clients and industry defense leaders, converting it into so-called intellectual property, and selling it.
Rolta Industries has some of the worst HR practices, putting new joiners in a difficult situation.
From India, Mumbai
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The company develops its products by intentionally bidding low in all its lines of business, such as Defence, Battlefield Management System, OneView, or Oracle ERP, and then converts them into products, claiming them as intellectual property.
K K Singh, CMD of the company, is the son of a doctor who, on his mother's advice, chose engineering over the family's cyclic steel plant business in Indore. After moving to Mumbai, he has gained a reputation for appropriating the knowledge of clients and industry defense leaders, converting it into so-called intellectual property, and selling it.
Rolta Industries has some of the worst HR practices, putting new joiners in a difficult situation.
From India, Mumbai
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Without commenting on anything else, by adding a new non-compete clause, which is contrary to section 27 of the Contract Act and thus void, the company has virtually rescinded its earlier offer of appointment. You may repudiate the agreement, and you may sue the company for damages in terms of the apex court decision in Kasturi Lal v Union of India, decided in 1959.
Thanks,
Sushil
From India, New Delhi
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225Thanks,
Sushil
From India, New Delhi
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Employee agreement.doc
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