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ex-employees carrying same business

lawyer

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 

 
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FIN

 

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.

 

 

 

 
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lawyer

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
 
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lawyer

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
 
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lawyer

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
 
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FIN

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. 

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

 
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Practising Advocate

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.

 
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Advocate

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.

 

 

 
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Practising Advocate

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.

 
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