What are the consequences of breaking the NDA

692 votes

Hi, at the time of joining we sign many documents some of these are signed even without reading and without understanding nevertheless now you can't correct the past. My advise is relax let the Notice come we will see what are options available to us. I It is not correct to work with client of previous employer but if you have done it, stop worrying. We will react after notice. Regds

Advocate Wg Cdr Ajit Kakkar (Retd) LawRato

593 votes

Fundamentally NDA is a contract and consequences same as breach of contract which may lead to Compensation, or any other consequences furtherance of such clause in the NDA.
However, the whole consequence depends on the terms and condition of the NDA.

Ans to Q No. 1- Yes it is valid, if you have signed the same.
Ans to Q No.2- Yes it may impact your work with the client.

PS: Just for your reference, NDA based only with non-discloser, and not anti competitive as in your case.

Advocate Naveen Kumar Shelar LawRato

824 votes

Hi

Usually employment contracts include a Non-compete Clause that prohibits you, the employee, from doing same/similar business as that of the Employer for a certain specified period. This clause usually also bars the employee from engaging with the Clients of the employer who were associated with the employee because of his association with the employer/Company.

Please check if the same is included in your contract.

In case it is, then,
1. Yes, it is a valid prohibition; It will impact your work with the Client.
2. Consequences will vary depending on the kind of work solicited by you. (eg. whether such information was already in public space?)

Advocate Mishika Singh LawRato