Regarding my company appointment letter

This query is : Resolved 

Querist : Anonymous (Querist)
21 April 2019

I have recently joined a company, they have some Alien type conditions which i got to know when i got my appointment letter on Day 1.

Please help me how can i get out of this situation.

Please validate the below conditions if they can really impose on me as per Indian law.

1> You will not join any competitor or start your own business as mentioned in the Non Disclosure aggreement and restrictive convenant agreement. The company reserves the right to take various administrative actions (for example, withhold dues as part of the full and final settlement as well as institution of police and criminal cases)

Question : I have not been told about this point in agreement and never explaned in initial round of interviews and HR manager discussions. When i got my appointment letter, they have just ignored my concerns.
Is this point valid according to Indian Law ?

2> You will be required to give a 90 days prior notice to the company in all cases. You may not resign from the services in case the project/ work assigned to you remains incomplete. you will be relieved subject to completion of the project/assignment in hand. your account will only be settled after the completion of the project /assignment and your not coming to work or not taking efficient and suitable steps to complete the project will be treated as being willfully absent and for that you shall be liable to pay an additional sum of Rs 5,000/- per day as damages till your resignation is accepted and your accounts are settled.

Question : Is this point valid according to Indian Law to demand from their employee for such additional amount ?

kavksatyanarayana (Expert)
21 April 2019

Dear queriest, whether their conditions are as per law or not, is not the question now. If you wish to work in their company you have to obey their conditions. But to me, it is risk and not advisable to agree such conditions.

Sudhir Kumar (Expert)
22 April 2019

nothing unusual in these conditions

the service conditions of govt employees are more stringent.

Dr J C Vashista (Expert)
22 April 2019

Is it a real or hypothetical story of an anonymous person?

Shailendra M. Deshpande (Expert)
22 April 2019

Point 1 becomes valid if company is providing training for products or services to employees. NDA has been common practices to safeguard trade secrets of the company.
Point 2 of 90 days notice period is common. The SC judgement in case of Inland Water Transport Corporation Vs. Brojonath Ganguly has stated that resignation can be hold if special project assigned to an employee based on his skills & if it is not completed.
Disclaimer: - Information provided based on stated facts. No legal Advice is prescribed on the same.

P. Venu (Expert)
22 April 2019

Yes, some among the conditions overreach the law and the public policy. And they are vague, too. Whatever the conditions, the employer cannot enforce them unilaterally.

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