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What action company can take if I joint the competitor only in 6 month
29-Jan-2023 (In Labour & Service Law)
After training period I left my job after 6 months due to ill health and joined another company which deals with same products as my previous company does. I had agreement with my previous company during my training period that I cannot join any other company who is dealing with same product as they do even after I leave their company. 1.Can they file a Suit against me? 2.Is it restraint of trade and against public policy?
It depends on how strongly the non-competitive clause has been worded and to what extent the company can hold you liable in case of breach of the contract. Presuming that you have resigned from your earlier employment by putting the company on notice, the chances for the company to enforce such a restrictive covenant and prohibit you from seeking employment elsewhere would be slim. Here it would definitely amount to a restraint of trade. However, if you have abandoned the services of the previous company during the probation/training period, without any notice and have sought an employment with a purported competitor company, the erstwhile Company might consider to initiate legal actions and seek compensation for its time and effort in imparting training to you. Nonetheless, there would be still grounds available to you to defend yourself in such a case since it would be onerous for the company to establish its merits as regards the quantification of the compensation amount. Thanks
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Adv. Sandipan Mohanty
Bhubaneswar | 100+ Answers
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It depends on your agreement and type of product they deal.example if the company has specifically NDA agreement for non disclosure of product manufacturing etc. Otherwise there is no legal complicated on joining.
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Adv. H V B R K Dora
Bhubaneswar | 25+ Answers
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