Violation of NDA agreement

[nishat rab]

Dear Members,

I need your valuable advise on the following query

If Mr A signed a non-disclosure agreement (NDA) with his employer at start of his job. In it there is a clause to prohibit me from leaving the company within one year of joining. If Mr. A violates these agreements is he liable to provide injunctive relief to his employer. This NDA is written on a Rs 100 non-judicial stamp paper.

Since Mr A has a good offer from another employer, is it possible to break this NDA? Foremost, is it a legal NDA? Can his employer use the NDA to press legal charges to harrass him?

 

Would appreciate an early reply
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Professionally yours,

CS NISHAT RAB

[priya stalin]

Dear Nishat

Kindly note that NDA is a non disclosure agreement in which the concept is that the procedure adopted and the other issues relating tactics or talents or any thing copy right protected like database etc of the company should not be disclosed to others.

This is the object of NDA. With respect to prohibiting an employee from moving suddenly from a company and to join a company. You need to get a contract signed putting the reasonable terms to that effect and you cannot prohibt a person from preferring a better job unless you have a written consent from the same party and that to for a reasonable time period only it is valid. If your company faces any loss or damage due to disclousre of secrets of your company you can proceed against the person under NDA agreement otherwise it is not valid.

Regards
Padmapriya
Advocate & Partner
SP Legal Associates

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D. PADMAPRIYA

[CS.Omkar]

Dear Mr. Nishat,

 

As rightly mentioned by Ms. Padmapriya, NDA is for not disclosing the confidential informations received in the course of discharge of duties. Employee is bound not to disclose such confidential information. However, a clause not to leave employment within 1 year can never be a subject matter of NDA. Such clauses are not binding and not maintainable in law. Employer can seek such retention Bond if it is towards training of employee, who has no practical experience and the nature of job requires specific training to discharge his duties and also employer is incurring cost for that training (reimbursement will be limited to cost incurred). 

 

Employer can file suit based on the NDA simply to annoy that employee. However, the same will not be upheld in law*. This being a civil matter, personal presence of Employee is not warranted in each and every date of hearing. Representation through Advocate is sufficient. (To that extent inconvenience will be less for Employee) ... 

 

Regards...Omkar

 

* Note: Views are based on facts provided. It is advised to take expert opinion before taking any action.

[Jayashree Chandrasekaran]

Dear Mr.Omkar,
I appreciate your answer,especially the Note
Jayashree

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C.JAYASHREE
S GANESH & ASSOCIATES
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[nishat rab]

Thank you member for your valuable suggestion

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