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I Need advice for NDA and Non Compete agreement


08-May-2023 (In Corporate Law)
Working with MNC for 6 year ,On 9th march resign resignation approved and then they give to sign non compete/Non disclosure. such claues not mention in joining letter or promotion.All of sudden ask to sign it.Its say can't join compitetion for 3 months without pay and for 1 year can't approach any customers or clients .Please advice wht shld i do I believe if I dnt sign they won't give full and final and experience letter
Answers (2)

Answer #1
875 votes
You can sign it without hassle. Though legal for the employer to ask an outgoing employee to refrain himself from joining its competitors its a mere formality. Nobody is going to keep watch on you. You can also tell your new employer not to share any information about you with any individual or company without your consent. Moreover, if you join private sector nobody can seek information about you under Right to Information Act as well. So, do not worry at all.
Answer #2
650 votes
Peruse your employment agreement probably there would be a clause to that effect. If no clause then you can refuse to agree and say condition not within my employment agreement.

If the clause exists, you may reply that this clause is hit by s27 clause or void.

Legally Section 27 in The Indian Contract Act, 1872 considers all contract void.. Exception are mentioned under s27.
27. Agreement in restraint of trade, void.—Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void. —Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void." Exception 1.—Saving of agreement not to carry on business of which goodwill is sold.—One who sells the goodwill of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the goodwill from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business.

You have all right to refuse to sign contract that restrain you from taking employment elsewhere ...

You cannot be forced to sign such agreement and no one can withhold your F&F solely on this grounds.

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