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K R Arun Raaj (Designation)     20 October 2011

Non competence


I have been working with a employer now. I have not signed any non competence agreement so far. I have already put my papers and i am serving my notice period. Now the current employer asks me to sign a non-competence agreement not to join certain companies.

I didnt sign and they are making issues with my relieving .

Initially when i was offered with the currrent employer , I remember signing a set of pages, which says that i cannot join any partners or client companies.

But today , my current employer and future employer are no more clients.

What would be the solution for this. Kindly do reply for this. I am struck up in between now.


 5 Replies

Nadeem Qureshi (Advocate/ nadeemqureshi1@gmail.com)     20 October 2011

Dear Arjun raaj

no need to sign any documents firstly wait for your notice period after that if they created any issue regarding your releaving then fight with them through legal means

jayant (legal)     20 October 2011

Dear Mr.Raaj,

Do not worry you may sign this void-ab-intion agreement. It does not harm you. It is just mental satisfaction of the employer.


Thanks and Regards,


1 Like

K R Arun Raaj (Designation)     20 October 2011

Thanks for your comments. 

So , I should not sign any documents. Will i be able to join my other employer  ?

Kumar Doab (FIN)     20 October 2011

Learned experts and members have given valuable advice, kindly follow it.

Apply your rapport, goodwill, negotiation, persistence, persuasion skills and:

1. Obtain acknowledgment of your notice of resignation from reporting authority/appointing authority/MD/Head-HR etc. If you have not addressed, your notice of resignation with effective date of resignation mentioned in it, to appointing authority forward the same now with a copy to MD/Head-HR etc.

2. Complete all task on hand and do not leave any assignment.

3. Submit a written communication under acknowledgment with a copy to you addressed to reporting authority/appointing authority/MD/Head-HR, company secretary etc stating date of notice of resignation, effective date of resignation, and mention that you are willing to cooperate up to and within effective date of resignation, to train your replacement and attend to work in routine manner, and company should inform you well in advance to whom charge and company property should be submitted, should be handed over. You may request to supply you a list company property with you in record and that designated employees may be advised with a copy to you, to issue acknowledgment of handing over the charge and company property and to mention that nothing is pending. You must obtain comments in acknowledgment that nothing is pending at your end. You may request to make the necessary arrangements fro smooth exit formalities well in advance and supply you the FNF statement, settlement of a/c and disbursement of due payment, work experience/service certificate, form 16, relieving certificate, PF accumulation reports withdrawal/transfer forms, any dues at your end, NOC/NDC etc by effective date of your resignation. You may mention that you have served the company with absolute dedication up to the level of satisfaction of your superiors.

Company can sit upon relieving letter which is released after final settlement, but can not block other doc. kindly remain amiable, cool, gentle and maintain rapport and goodwill.

Company can make adverse comments on conduct in relieving certificate. However if company applies this without any ground and with vindictiveness, company can be sued and made to print retraction.

You shall able to resolve the matter in your favor without any altercation, dispute, and litigation.

4. You should submit a reminder say 7 days before effective date of resignation and finally submit formal notice of resignation of effective date of resignation.

5. If you wish you can request to supply you certified copies of all docs/forms other than appointment letter on which your signatures were obtained but copies were not supplied to you. You can obtain certified copies of employee rules and standing orders if these have not been circulated to you till date.

6. You should leave any room for company to level any charge against you, and you should build record in your favor.

7. Submit in writing under acknowledgment, the tentative date of your joining to your next employer and mention that you are in position to submit the acknowledgment of your notice and final resignation, at the moment and can submit the acceptance and other docs only/as and when  upon receipt from your current employer.

Promoters of the company or HR or reporting authorities may get apprehensive that employee may poach their clients, and this is but natural, however the market is open to all and clients are not property of any individual and company. The one who is competitive and effective and whose product and service is better and beneficial gets the business. While you were in employment you must have converted clients in favor of your current employer.

The matter posted by you require a smart approach and you should  allay the apprehensions of your current employer and may mention that you are not joining any of the client who is currently competitor, and resolve the matter in your favor.

1 Like

SURESH GODBOLE (ADVOCATE)     28 October 2011

The Point to be clarified here is :-

               (i) What is stipulated (explicitly written ) in the Non -Competence Agreement  of the consequence(RESULT) of YOUR JOINING THE SAME COMPANY TO WHICH YOU HAVE PROMISED NOT TO JOIN.

                 In a nutshell , " What the present Employer will do (take action against you) if you join one of these companies. "

                 Everything depends on THIS CLAUSE.

                  Present employer has a right to protect his interests from his Competitors.

                And if you have no such intentions to join such named company as of now or in Future , there is no harm in signing  such agreement . 

                With regards , 0-9929596546

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