90 days notice period
madhukar
(Querist) 09 October 2012
This query is : Resolved
sir, I was employed in a Public ltd company (shares owned 51% by individual family) for 4 years( nove2008- aug-2012). in marketing as marketing executive. due to low salary. i have started my own propitory firm in jauary 2012 in my name. & started manufaturing a similar product that my company make & sold in market to same customers. company has recd. information in august7 about my propritory firm. they pressurise me to give confession letter on aug8 & i gave under pressure, subsequesntly i resigned on 30aug.send my resignation letter by post. company not accepted it & send me legal notice on 10 sept stating 1. cheat to company & compete the company product 2.breach of employement conditions 3.not served advance notice of 90 days as per appointement leetr 4.not hndover work charge.
i have not replied it then after 1 month oct 3 they lodge police complained aginst me. police called me & taken my statment ( where i said i will close my firm & will not manufature & sell the product for three years). my questions are
1. 90 days salary i have to repay company? ( thats what company ask now)
2.company wants me to give in writing that am closing my exisiting firm & will not make same product for three years that company makes( this is what company want from me in writing on indemnity bond). & company will take legal acton if i violate so. then my query is, is it compulsary for me to give in writing to them & if i give in wrinting as above & tomorow if i start propritory firm with someone else name but handled by me then am i in fault? if company knows in future that am involed in, then can they take criminal & civil action against me?
In my appointement letter following conditions are mentioned that 1.you will not be engaged directely or indirectely in any work,buisiness,and trade of any kind what so ever or carry out other assignement except with prior permission of company 2.you should not compete the same product which the company or their designated site is manufacturing & marketing anyware in india or at global market even after resigning the job from company. if you do so the company is eligiable for componsation or loss of business & profits occured due to use important information to market or manufacture the similar product for our competition 3.you should not disclose any information regarding the affairs of company, which comes to your knowledge during the period of service. 4 your appointement is revocable giving three months prior notice by employee or by payment of 3 months gross salary to the company.
now if i refused to pay 90 days salary to company & giving in writing on indemnity bond what they want,then can police will file 420 case.( i already told them that i am closing my firm in ten days time- this point actually constitutes cheating) & if so what will happen they arrest me & take to court within how much time?
pl suggest
ajay sethi
(Expert) 10 October 2012
what were terms and condions of your appointment letter? does it provide for 90 days notice period ?
you should have replied to legaal notice . what was staement you gave to the police ?
contact a local lawyer before signing any indemnity bond . did the appointment letter provide that on leaving the compnay you wont engage in manufacture of any identical produce for 3 years?
