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suyog manwatkar (Consultant)     07 December 2011

Employment clause restricting future employement

Dear Sir,

I have a query regarding one of the employment clauses in the company which I am employed in currently.
One of the clause of employment prohibits me to work in a competitor company for a period of one year after leaving the company. The agreement does not mention any name of the competitor company. I believe this clause violates my freedom of occupation guaranteed under Article 19 of the Constitution.
Kindly advise whether the current company is legally authorized to prevent me from working in any other company.
Thanks & regards,
Suyog Manwatkar


 3 Replies

Sundar XXXXXXX (Software Engineer)     07 December 2011

No. And you are right, the clause violates your constitutional rights. In fact, even if your terms of employment did mention the names of competitior companies, the clause would still be violative of your constitutional rights.

I dont think any company will take the matter to court if you joined a competitor company. But I believe most companies in the same business have this agreement among themelves not to hire somebody from a competitor company with in a specified period

Kumar Doab (FIN)     07 December 2011

You have your right to earn your livelihood and you can not be bonded to drop your right to earn livelihood.

Is their any arbiteration clause also attached to this clause?

ssujeet-Advocate (n/a)     08 December 2011

no such clause is illegal.

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