Enforceability of employment bond
21-Aug-2023 (In Labour & Service Law)
I am joining other company but my previous compy signed one bond of 2 Cr. which state that I cannot join a competitor and I can not revile any company secrets. But the company which is using services are not their own products its available open to use anyone after purchasing from them(Not from My previous Company product). I wish to use that product with my own knowledge with a competitor for my appraisal and new company benefits. Kindly support me legally I can do this or not?
This is my response to you:
1. You should know this case beforehand: In the case of Pepsi Foods Ltd. & Others v. Bharat Coca-Cola Holdings Pvt. Ltd. and Ors., the enforceability of the negative covenant restraining employees from employment elsewhere was viewed as ‘economic terrorism';
2. Even then they will send you a legal notice;
3. Even if they approach the court, they will not be able to prove anything;
4. If you have signed a chit or paper or document or agreement where you agree to pay the compensation then they will chase you;
5. You can always claim protection under fundamental rights under Art. 19(1) (g): Right to profession;
6. Therefore do not worry about maximum penalty;
7. If you worry so much then do not join any competitor business, take a different line of business or corporate work;
8. Best advice can be given after verification of your bond.
1. You should know this case beforehand: In the case of Pepsi Foods Ltd. & Others v. Bharat Coca-Cola Holdings Pvt. Ltd. and Ors., the enforceability of the negative covenant restraining employees from employment elsewhere was viewed as ‘economic terrorism';
2. Even then they will send you a legal notice;
3. Even if they approach the court, they will not be able to prove anything;
4. If you have signed a chit or paper or document or agreement where you agree to pay the compensation then they will chase you;
5. You can always claim protection under fundamental rights under Art. 19(1) (g): Right to profession;
6. Therefore do not worry about maximum penalty;
7. If you worry so much then do not join any competitor business, take a different line of business or corporate work;
8. Best advice can be given after verification of your bond.
Respected Client
As per your query you are joining new company any you allredy signed bond of undertaking in this situation you have to go through the agreement you allredy signed. If directly or indirect way old company has any concerns with your new work you can't do the same.
Thank you
As per your query you are joining new company any you allredy signed bond of undertaking in this situation you have to go through the agreement you allredy signed. If directly or indirect way old company has any concerns with your new work you can't do the same.
Thank you
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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