Question

What is the ethical issues relating to leaving a corporation in order to work for one of its competitor

Answer 1

Hi, @Minhaj,

It is very common for a company to issue appointment letters containing clauses that restrict the employee to join a competitor company or rival company for a particular period of time after cessation of employment with the present company. How far this is legally tenable?

This kind of provision in the appointment letter is absolutely invalid and does not hold any value in the eye of the law. 

In relation to employment, both the parties, i.e. employer as well as employee both enjoy certain rights but at no point of time such rights can be used against the other party in order to restrain him from doing any particular act. If an employee finds a better opportunity (in a rival/ competitor company) he has every right to join the new company and the present employer cannot force the employee not to do so in any manner whatsoever under the present law.