ramesh (Executive) 29 January 2011

Cant work in same proffesion for 1 year

Here are the excat wordings

"Subject to applicable Law , during the Employment period with the company and for the period of 1 year immediately following termination or expiry of such employment Employee irrevocably undertakes not to directly or indirectly in india or elsewhere , either as induvidual on his/her own account , partner, employee, consultant, advisor , agent , contractor , director, trustee, committe member, office bearer or share holder:

1. Own , manage, operate,control or be employed by or participate in the ownership , management, operation or control of, or be connected in any manner with , any business of the type or character engaged in and competitive with that conducted by the company or nay affiliate as it now exists or it may exist at the time of termination."

Is this unfair clause valid in the eyes of law ??

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2 Replies

GUDAKESH KUMAR (LAW OFFICER) 29 January 2011

An Ex-employee can only be restrained to the extent that pursuant to cessassion of his previous employment, the knowledge and training imparted to him in his previous should not be used by him to adversely effect the interests of his past employer. Further, restrains seems to be infringing fundamental rights of employment of the ex-employee

Rajiv (Senior Consultant) 31 January 2011

I would agree with Gudakesh only to the extent that this may become violative of his fundamental right. By way of a valid contract it is not illegal for any company to safeguard its interest by such a clause. So in order to prove that fundamental rights have been violated, you would need to have clinching evidence that you are not capable of doing nothing better for your survival. After all, under fundamental right we are only pitching on "right to life" and your "right to liberty" was already excercised by you when you chose to sign this contract with open eyes.