Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

gaurav (student)     12 January 2014

Non compliance of non compete agrement

Effect of non compliance of non compete agreement during cooling period ?

Should an employee take an undertaking post cooling of period? 

An fellow employee willingness to join the same business & he has not been persuaded to join it. What will be the effect of non compete ?



Learning

 1 Replies

Kumar Doab (FIN)     12 January 2014

What do you mean by cooling period: Is it Notice Period?

Is it not mandatory to sign any agreement any time during employment including notice period.

Employee can decline any clause or any agreement.

Non Compete clause/agreement may very well operate during period of employment.

Indian courts have consistently been denying enforcing Non Compete clause/agreement post termination of employment as it hits right to earn and source of livelihood and Indian Contract Act.

Before the employee signs any clause/agreement it shall be appropriate to show the copy to a labor consultant/service lawyer, law firm specializing in such matters and let the lawyer go thru the language and statements and opine thereafter...............

 

The clauses/agreements on Non Solicitation, Data Protection etc..........................may be valid post termination of employment.

1 Like

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register