Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Sunil S Nair (lawyer)     29 March 2015

Ex-employees carrying same business

Respected all Learned Advocates,

Does Ex-Director and ex-employees together started competitive business can they be made liable for the same for their conduct for soliciting clients of earlier company for whom they worked as they new each and every business and clientele relation of the earlier company they worked for.

 

Regards and Thanks,

Adv. Sunil S Nair 



Learning

 12 Replies

Kumar Doab (FIN)     29 March 2015

 

NO. 

One has to earn his/her livelihood from the skill set he/she has, jobs he/she knows, markets he/she is familiar with or has familiarized....................Even to the extent any one can do any work anywhere with anyone to earn his/her livelihood ………………

Any client is no one’s property.

Any Market and clients in any market are NOBODY’s property and all entrepreneurs/establishments free to approach  any clients  for business and likewise any client is free to do business with any entrepreneur/establishment/individual.

Indian courts of law have consistently been declining to enforce such clauses as it hits clauses of Indian Contracts Act and Right To earn Livelihood.

 

 

 

Sunil S Nair (lawyer)     29 March 2015

Thanks Adv. Kumar Doab, I was familiar with employees right to�livelihood but some confusion was there because of soliciting client's of earlier company they worked for and during that course selling their products with that those of companies for whom they have been working

Sunil S Nair (lawyer)     29 March 2015

Thanks Adv. Kumar Doab, I was familiar with employees right to�livelihood but some confusion was there because of soliciting client's of earlier company they worked for and during that course selling their products with that those of companies for whom they have been working

Sunil S Nair (lawyer)     29 March 2015

Thanks Adv. Kumar Doab, I was familiar with employees right to�livelihood but some confusion was there because of soliciting client's of earlier company they worked for and during that course selling their products with that those of companies for whom they have been working

Kumar Doab (FIN)     29 March 2015

Dear Mr. Nair: They can sell their products to any client......................even if the said client(s) is in the records/lists of their past employer. 

dkmonline   30 March 2015

This solution enables contributing businesses to save on time and costs associated with ex-employee verifications and earn revenue on each check conducted.

R.Arvind (Practising Advocate)     20 April 2015

Dear Mr.Sunil, While an ex-employee's right to his livelihood is recognised, the trade secrets of the Ex-Employer is also entitled for protection. Therefore, it may be verified whether the ex-employees had signed any Non-Disclosure Agreements with the ex-Employer. Also, IPR issues may be involved depending upon the type of Industry of the Employer. also, the customers of the Ex-Employer can be considered as a Trade Asset entitled for protection from poaching.

N R Dash.. (Advocate)     20 April 2015

It is not legally forbidden to compete in the business market. There can be as many competitors in the market doing the same business. May it be concept or product selling, competitors can do the business.

 

Employees are liable to maintain integrity till they are in service. When they leave the company & become ex they can do any business.

 

 

R.Arvind (Practising Advocate)     20 April 2015

The employees may also be obliged to maintain their integrity for a particular period of time even after they leave the services of the Company. It is usually a part of the Non Disclosure Agreements. Also, please note that the Query relates to the Ex-employees carrying on same business and not that of Ex-employees joining any other Employment in the same business. There is a distinct difference between starting a Competitive Business against your Ex-employer and that of entering into an employment with an Organisation doing similar business like that of an Ex-employer. Right To Livelihood preserves the Right to Carry on Employment but whether it can extend to carrying on  a business similar to that of an Ex-Employer, remains to be seen.

N R Dash.. (Advocate)     23 April 2015

Non Disclosure Agreement does not forbid anyone to do the same business. An ex can very well establish himself as a competitor. 


(Guest)

Mr. Sunil,

 

So far as the employee is concerned, unless he had a prohibitive condition in the terms & conditions of his appointment for any specific period to get employment or take up competitive business after resignation or retirement, no legal action becomes due against him.

 

About Director after resignation, you will have to refer the terms & conditions, if any, prescribed specificlly to prohibit the directors in the MOA and AOA for taking up competitive business.

 

In normal course, you or your company is helpless in that regard.

Ms.Usha Kapoor (CEO)     28 August 2016

Dear Client,,

 

            Your   ex employee are bound to  your not to compete with you in the same businesss after they quit your company only for certain reasonable  timem preriod. Bweyonsd  which they've every right to compete with you by doing a similar business. AS a former employer youu can't impose onerous unreasonableperiod of time to your employees in restraint of trade which is a fundamental right under indian constitution and also violative of restraint of trade provision of secton27 of Indian Contract Act.

 

 

 

 

 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Recent Topics


View More

Related Threads


Loading

Post a Suggestion for LCI Team
Post a Legal Query