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Can the Employer stop me from starting the same business after leaving


01-Dec-2023 (In Labour & Service Law)

I was worked with one jewelry showroom, handling sales there and i was best performer of that company.I resign there and i want to start my own business .He was not given offer letter when i joined there , he just send me one confirmation letter on my email id.When i was resign after 2 1/2yr he has given appointment letter and he told me you cant involve in jewelry business next one year, and he also told me if you will not sign this letter then we cant give your full and final, I have sign that letter.But i want to do my own business.Kindly advise me what should i do?

Answers (3)

Answer #1
991 votes
No he can't. There can be no blanket ban on profession or business you undertake. Such ban will be bad in eyes of law and not enforceable in law. Go ahead do your business. It will be bad under indian contract law and well as violation of your fundamental right under constitution of india.
Advocate Charu Mathur

Adv. Charu Mathur

LawRato Delhi | 25+ Answers
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Answer #2
895 votes
You may start your own business. However the seriatim of events would be required to be analysed to prove that the employment letter was only an afterthought by the employer from preventing you to start your own business.
Advocate Abhimanyu Jhamba

Adv. Abhimanyu Jhamba

LawRatoDelhi | 25+ Answers
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Answer #3
935 votes
He may stop you if there is a non-compete clause in the appointment letter. However the same comes with various restrictions and limits. Further, if you can prove that the appointment letter was post dated then you can have a easy way out. In my experience most of the time such threats are blank threats as not many employers would go into litigation to stop you from doing the same. Further, as you were not employed in any specialized area per se they cannot claim disclosure of business secrets against you. You can always start your new business.
Advocate Anas Tanwir Siddiqi

Adv. Anas Tanwir Siddiqi

LawRatoDelhi | 25+ Answers
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