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bitv (software developer)     05 April 2013

Employers agreement

ello, 

Today i received a non disclosure agreement (in Rs.100 stamp paper ) from my employer (in a software company) , they mentioned several points in thier favour and one of them is "The employee will not engage himself in the employment of other competitor dealing in the same business for a minimum period of two years from the date of leaving the company".My employeer ie the current company is a software company providing software services (like software development , web development) and software products and i am working there as a software developer. They are also a big group doing lots of business in steel , oil etc and they mentioned that this agreement is applicable to these group companies also . At the time of joining they have signed an employment bond for three years with me and that is valid till next Dec-2013 and now they are insiting me to sign in this new agreement also , I am so worried because if i hesitate to sign this document my job will be on risk, at the same time if i sign it i will be again legally bounded . I am a software developer and if i join any other company in IT sector they can say that that company is their competator just because it is a service industry deals in software development and web development.

Please advice what to do in this condition

Regards

Vipul Jain



Learning

 2 Replies

bitv (software developer)     06 April 2013

Hi ,

 

I cannot see the reply . The link is not working.Please post it 

Kumar Doab (FIN)     06 April 2013

I am so worried because if i hesitate to sign this document my job will be on risk, at the same time if i sign it i will be again legally bounded .”

Non Compete:  It may hold good till employee is in employment of your company.

Negative covenant which restricts the employee beyond the period of employment are considered to be unreasonable, may be struck down as violative of agreement in restraint of trade, violative of Section 27 of the Indian Contract Act.

 

The Indian Contract Act, 1872, which provides a framework of rules and regulations, governing the formation and performance of a contract in India deals with the legality of such non-compete covenants. It stipulates that an agreement, which restrains anyone from carrying on a lawful profession, trade or business, is void to that extent. Under section 27 of the Indian Contract Act, 1872 agreements in restraint of trade are void.

 

Indian courts have consistently refused to enforce post-termination non-compete clauses in employment contracts, viewing them as "restraint of trade" impermissible under Section 27 of the Indian Contract Act, 1872, and as void and against public policy because of their potential to deprive an individual of his or her fundamental right to earn a livelihood.

 

It shall be appropriate to show the copy of the bond signed by you previously, copy of the bond and Non Disclosure Agreement you are being asked to sign now to a competent and experienced labor consultant/service lawyer specializing in such matters, give inputs in person and understand the merits.

Has your company incurred expenses on some specialized training provided to you which added to your qualification, extra ordinary skills, or some foreign tour for some highly advance training?

Or

There is actually a need of workforce to do the regular monotonous and technical jobs and company has imposed bond to ensure that the employees under bond keep on saluting the Bosses and remain in job without any complaints.

Mere mention of word liquidated damages in bond is enough for majority of the ill informed employees and a fear psychosis is created.

If you decide to remain with current employer you may think about submitting a communication in writing mentioning that no expense was incurred on you while you joined on dated……….and from your DOJ to till date and you may be informed the reason and ground for asking you to sign another bond for 3 years if you want to continue further in job. You did not sign FTC (Fix Term Contract) of 3 years that need s to be renewed after each 3 years. If you do not like don’t submit such a communication.

Are you sure that your next employer will not impose a bond on you?

You may start reading informative material posted on community of employees from IT sector. Probably you would know smart ways from seniors.

Dealing with employers especially in your trade has become a game of chess. Better learn

BE SMART.

 

There has been along felt need for strong, well meaning, well knit union for IT employees.

You may go thru interesting publications at:

https://www.rediff.com/money/2005/oct/06bspec.htm

https://www.siliconindia.com/shownews/Should_IT_companies_allow_trade_unions-nid-67674-cid-1.html

https://www.answeringlaw.com/php/displayContent.php?linkId=1196

The proposal to forge a union for IT workers has now come from the Centre for Indian Trade Unions (CITU) -- the trade union wing of the Communist Party of India (Marxist) -- the largest Left party in the country.

 

West Bengal Information Technology Services Association (WBITSA): This union is floated by CITU (Centre of Indian Trade Unions- the trade union wing of the Communist Party of India (Marxist)- the ruling party in West Bengal).

 

"A union for IT workers is the urgent need of the hour. I would call the IT professionals 'the labourers of the information age.' They toil long hours; they work at night; and some of them still get meager salaries. So a labour union for them would help fight for their rights," CITU president M K Pandhe told………..

"It is not going to be easy. Already, we have begun the process to hold consultations with many senior IT employees in places like Kolkata [ Images ], Bangalore, Chennai and Trivandrum (Thiruvananthapuram). We do hope to establish a proper union soon," Pandhe pointed out.

Left leaders say there is also already tremendous backing from the Union of Network International, a global alliance of 900 trade unions, to forge an IT industry workers union in India.

However, a number of organisations for IT professionals now exist at the state level in Hyderabad (in Andhra Pradesh) and Bangalore (in Karnataka [ Images ]).

 

 "Yes, there is an urgent need for a labour law exclusively for the IT industry. It is the one sector that is booming across India, and we need to frame a legislation for IT workers. We are going to take up the issue with the Manmohan Singh [ Images ] government soon," said Community Party of India national secretary D Raja.

 

There are other forums e.g:

'IT Professionals Forum.' (https://www.itpfindia.org/in).

 IT/BPO Voice of India | Facebook

UNITES Professionals

https://www.unitespro.org/

 

https://www.itecentre.co.in/

Contact Us

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ph : 9620907912

Please Join ITEC group for discussion among IT-BPO employees. To join the group, please send a blank mail to itec_bangalore-subscribe@yahoogroups.com

 

https://ithiworld.wikispaces.com/News+Update

ITHI, a forum
of women employees in IT and ITeS

 

 

 

 

 

 


Attached File : 984039712 417759075 validity of employment bonds.pdf, 984039712 background paper.pdf downloaded: 118 times

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