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My Old organization telling I can't join any other company within 400 km
6 months ago
My Old organization telling I can't join any other company within 400 km from the last office location.
And their legal team poking my previous company
A.Dear Client,
A service bond itself does not create any relationship between an employer and an employee unless and until it is followed by the essential steps required to make the Bond valid and enforceable under the law. The validity of Employment bonds can be challenged on the basis of Section 27 of the Indian Contract Act,1872 which prohibits any agreement in restraint of trade and profession. The law states that an agreement (employment bond) will be illegal only if it restrains someone from exercising a lawful profession/ trade/ business. As per the mandate of Section 27, any terms and conditions of an agreement that directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid. The employee has the right to resign from the employment even if he has agreed to the employment bond to serve the employer for a specific period of time. In the case where the employer is able to prove that the employee is joining the competitor to disclose the trade secret then the court may issue an injunction order restricting the employee from joining the competitor. Further, Section 73 of the Contract Act makes provision for unliquidated damages (not stipulated in a contract) and Section 74 of the Contract Act deals with liquidated damages (stipulated in a contract) and no compensation is attracted for mere breach of contract u/s.73. 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party. So, if you are facing any action or threat from your ex-company, then if you are not holding a position of manager or supervisor in the Company, but a workman as defined under Sec.2(s) of the Industrial Dispute Act, 1947. serving a legal notice to the Company reach out to the office of the concerned Labour Commissioner to file a complaint against the company over alleged unfair labour practice for redressal of your grievance, But, if you are holding the position of manager or supervisor in the Company, you have to file a civil suit before the Civil Court for desired relief in the matter.
A service bond itself does not create any relationship between an employer and an employee unless and until it is followed by the essential steps required to make the Bond valid and enforceable under the law. The validity of Employment bonds can be challenged on the basis of Section 27 of the Indian Contract Act,1872 which prohibits any agreement in restraint of trade and profession. The law states that an agreement (employment bond) will be illegal only if it restrains someone from exercising a lawful profession/ trade/ business. As per the mandate of Section 27, any terms and conditions of an agreement that directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid. The employee has the right to resign from the employment even if he has agreed to the employment bond to serve the employer for a specific period of time. In the case where the employer is able to prove that the employee is joining the competitor to disclose the trade secret then the court may issue an injunction order restricting the employee from joining the competitor. Further, Section 73 of the Contract Act makes provision for unliquidated damages (not stipulated in a contract) and Section 74 of the Contract Act deals with liquidated damages (stipulated in a contract) and no compensation is attracted for mere breach of contract u/s.73. 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party. So, if you are facing any action or threat from your ex-company, then if you are not holding a position of manager or supervisor in the Company, but a workman as defined under Sec.2(s) of the Industrial Dispute Act, 1947. serving a legal notice to the Company reach out to the office of the concerned Labour Commissioner to file a complaint against the company over alleged unfair labour practice for redressal of your grievance, But, if you are holding the position of manager or supervisor in the Company, you have to file a civil suit before the Civil Court for desired relief in the matter.
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A.Dear Client
Restrictive covenants in employment contracts are often enforceable, but they must be reasonable in scope and duration. A restriction of 400 km from your last office location could be considered overly broad, and its enforceability would depend on various factors, including the nature of your work, industry norms, and local labor laws.
Restrictive covenants in employment contracts are often enforceable, but they must be reasonable in scope and duration. A restriction of 400 km from your last office location could be considered overly broad, and its enforceability would depend on various factors, including the nature of your work, industry norms, and local labor laws.
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