Illegal clauses in NDA Illegal clauses in NDA

I have already served full notice period; the resignation was accepted and last working day has been communicated. Now, the company wants me to sign an NDA and fill up feedback form in order to issue the relieving letter. Problems:
1. I was never informed formally that I have to sign the NDA.
2. The NDA contains clauses that interfere with personal freedom and freedom of speech. Example: I will never talk to any of the company's current employee again.
3. The company is also threatening me of dire consequences if I don't give positive feedback before my exit from the company.

Any advice / suggestion will be greatly appreciated. Thanks.

Kishan Dutt Kalaskar Retired Judge

Responded 1 year ago

View All Answers
A.Dear Sir,
Section 27 in The Indian Contract Act, 1872
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. 16 [***]

Rate me Five Star*
Helpful
Helpful
Share

Post Your Matter Post Your Matter

Talk to a Lawyer Talk to a Lawyer

Ask a question Ask a question

Vidhi Samaadhaan Vidhi Samaadhaan

Read Related Answers

question iconResignation before end of service bond.
Dear Sir, u just ignore their calls and messages. for such meagre amount they may not approach court to recover the amount. The law on this point is as follows: --------------------------------------------------------------------------------- BOND - EMPLOYER SHOULD NOT BE UNREASONABLE Fertiliser and Chemical Travancore Pvt. Ltd v. Ajay Kumar and Others Three trainees were selected by the employer who signed a bond stating that they would obtain two years of training in the company and after the training they will put in at least five years of service in the company. In the event of breach of this condition Rs. 10,000 was to be paid as reasonable amount of compensation for the damages to be likely incurred by the employer. The trainee resigned after five months of training. The High Court of Kerala held in this case that though the candidates were selected for training and not for permanent service, it still involved a lot of time, energy and expenses of the employer. The employer will surely suffer loss when a trainee breaks the condition of bond and walks off. The employer is derived of the expected service of a competent person. Breach of bond by the trainee is aspect entailing damages to the employer. Only the quantum of damages needs to be decided.
question iconGratuity Claims - have set up a new entity as an LLP firm
Dear Sir, it depends upon the mutual understanding between old company and new company. But, under any circumstances the eligible employees can't be denied gratuity.
question iconDual Employement , Asking for recovery.
Since you were on notice period in your previous company therefore you haven't received the release letter from that company and in the same time you started working in another company without informing them the same. You have done a mistake for sure but you should seek an apology from the company and request them to give you another chance since it was an accidental mistake as you were unaware of the same that during serving notice period you cannot join any other company. Hence you request your present company to give you another chance otherwise you may hamper your career. You should take the help of an advocate for solving your problem.
question iconSalary of appointed Director
You must send a legal notice to the concerned authority for making the payment of your due salary within 15 days from the receipt of your legal notice but if they fail to comply with your legal notice then you may sue the concerned company for not providing you the legitimate salary within the specified time, which is your exclusive right, before the competent court of law with the help of an advocate.
question iconABOUT BOND BREAKAGE AMOUNT
Dear Client, First of all why you want to file the case against the organisation. What are the difficulties you were or are facing then you can send a legal notice against the organisation. And may file a suit against them.