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UI’m in a bit of a tricky situation and could use some advice. I recently left my job, got my relieving letter, and joined a competitor. A few days ago, I received an email from my previous employer demanding I pay a non-compete clause fee, which was mentioned in my offer letter.
For context:
• The offer letter had a clause stating I’d owe money if I joined a competitor after leaving.
• I didn’t tell anyone at my previous company where I was joining, but I guess their verification process gave them an idea.
• I’m currently not in a financial position to pay anything, and I’m unsure if I’m even legally obligated to pay.Here’s what I know so far:
In India, post-employment non-compete clauses are usually void under Section 27 of the Indian Contract Act, 1872, because they restrain an individual’s right to livelihood. Since I’ve already received my relieving letter, I assume my exit process is complete.My questions:
1. Can I just ignore the email and move on with my life?
2. Are there any future repercussions if I don’t pay?I don’t want to create unnecessary drama, but I also don’t want to be bullied into paying something I don’t legally owe. Any advice would be super helpful!
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UI don’t know the law or case precedents but, without some form of an enforceable non-compete for certain roles in a company, IPR violations would be rampant. For example, I can hire the chief architect from a rival firm and use his knowledge to accelerate release of a competing product. I get your argument that you cannot be stopped from earning a livelihood. But that should apply if your particular skill cannot be applied at a non-competing company. NAL
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