Clarification on Employee agreement
Aadhinayagam
(Querist) 30 May 2008
This query is : Resolved
hi All,
I am a Software Engineer. As part of the employee agreement, my company has a clause during terminating one's service from the organisation:
Subsequent to the termination of employment, no Employee shall directly or indirectly:
iii. For a period of 1 year from the effective date of termination of employment, commence or carry on any business that directly or indirectly competes with the business of the Company;
iv. Seek employment or get employed with any of the Company’s clients, business partners, Affiliates, or vendors.
Is the above mentioned clause applicable in the court of law?? becuase if i am a software engineer, i can only join another company which is in a similar trade. could you pls clarify?
thanks
Aadhi
Guest
(Expert) 30 May 2008
It is a contract. I am sure you may not do software business similar to your employer. so (iii) is not affecting you.
Now (iv) If youa res seeking employment with your company clients, you need a permission from company, which as the compnay secrets are affected. If employment with business partner, you may carry away valuable data or secrets.
Therefore this clause is mentioned. You can take a permission and join them. If you are determined to join them, then maintain proper ethics.
Manish Singh
(Expert) 31 May 2008
These are valid clauses and have the force of law.
