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My last working day was 15th July 2022 and I have worked in this company for 3.5 years. Now, they are asking to sign a non-compete and NDA for 2 years and I am not ok and they have kept my relieving letter on hold. Is it possible to do so if an employee doesn’t sign which was not communicated earlier and the tenure of 2 year long. The clause mentioned clearly says that I cannot work with those companies that the company has partnered with directly or indirectly for 2 years and cannot partner with those clients
Question
My last working day was 15th July 2022 and I have worked in this company for 3.5 years. Now, they are asking to sign a non-compete and NDA for 2 years and I am not ok and they have kept my relieving letter on hold. Is it possible to do so if an employee doesn’t sign which was not communicated earlier and the tenure of 2 year long. The clause mentioned clearly says that I cannot work with those companies that the company has partnered with directly or indirectly for 2 years and cannot partner with those clients
Answer ( 1 )
You can refuse to sign the NDA as they cannot bind you for anything once they have accepted your resignation. You are no more an employee of the company. if they wanted to bind you, they had to get the same signed before you quit the company. signing of NDA as a part of exit formality is not permissible and same has been challenged before various courts. further, they cannot restrict you from joining any company where your expertise are in demand as the same would be hit by Indian Contract act wherein any agreement in restraint of trade is not permissible. Get a Legal notice issued for release of the reliving letter or file a suit against them in the Court.