Got hired? Going to quit? Better read this article before you proceed.

The first thing that one needs to know about one’s job is whether there are any bindings by the hiring organization. This is usually revealed during pre-placement talk or before commencement of the recruitment process. Not much attention is paid to employment contracts/agreements as the focus is more on pay package and benefits.

An article titled “Read Agreements, rather regret later” in the Opportunities supplement of The Hindu dated December 27, 2006 talks in specific about non-compete agreement.

“It is an agreement that prevents a former employee from working with similar or competing companies for a specified period of time after the employee has quit the organization.”

Let me give you a personalized example. Imagine that you have been working for a software firm for quite some time, say 2 years. Considering the demand for experienced professionals in your industry, you think of applying elsewhere to upgrade your salary. You put in your papers and congratulate yourself on landing a better job (imagine you got the new job). Well, things may not be rosy if you are ignorant of the non-compete agreement you had signed with your previous employer. According to it, you cannot join the new organization for a specified time period, which means you would be jobless for quite some time! That means an opportunity cost. That would also mean that you may not get the new job as well. Life is beautiful I say, but guess I forgot to mention that it is hell complicated as well.

If you look at it objectively, you won’t find a single reason to blame your ex-employer. Companies invest heavily on your recruitment, training and development. They help you build your knowledge base by giving you access to their business archives and thousands of International journals and research papers. They certainly have the right to protect their interests by ensuring that you do not use the goodwill, trade secrets, or relationships developed during your employment to compete against the organization.
So where can you find a non-compete agreement? According to the article,

- the clause may be incorporated into the employment agreement,
- made into a separate contract, or
- combined with non-disclosure agreements

Such agreements are legally enforceable in India. You might be asked to sign such an agreement either at the time of your hire, during your employment, or when you quit the job. Generally, some kind of compensation (stock option or incentive) is given to recompense the employee for signing the covenant. But if you are asked to sign it at the time of your hire, the offer of employment itself is considered a kind of compensation.

The limitations on you?

- Cannot pursue opportunities in the same field from a direct rival
- Cannot start your own company in the same field
- Restriction on time and geographic limits

Don’t even think of breaking the law. The company has the right to sue you.

There are a few exceptions to legal enforcement of non-compete agreements. The company cannot inhibit a person if:

- It cannot prove that he/she is directly impairing the interests of the organization by working for a competitor.
- The employee is forced to quit due to wrongful termination, layoffs, permanent disability or other reasons beyond the employee’s control.
- The employee can prove that he was forced to sign them, or if the employer breaches one or more terms of another indenture.

You can choose not to sign such contracts if the company hasn’t informed you about it at the time of offer, or you are not compensated for signing such a bond. By and large, such agreements are legally binding once you sign them. So better get to know all details regarding your job offer.

Keep your eyes and ears wide open during your interaction with the company and feel free to ask your HR about the terms of the offer. How many of us actually read any document fully before putting on our signature? Read the agreements word by word and sign only when you are assured that you understand them in toto.

Ze Awakening

Better late than never. These are the words that first come to my mind as I begin my foray into the world of Blogging – a word that I had been averse to, until a few hours back. Well, not that I was constipated with words or technologically insolvent. It was simply due to my demanding course and a lack of momentum [I am good at excuses ;)]. I strongly believe that each frame of life must be shot at the right time and from the right angle. Now that am on the brink of completing my Management degree and have a decent job in hand, I feel this is the right time to begin my binary conversation with the world.

In the months to come, I would be posting on a range of topics - some personal experiential learnings and some general stuff. I might sound totally abstract at times, but then there is a form to abstraction as well. I can promise a couple of things – photographs, Harry Potter updates, management-related stuff, loads of cheeky and naughty jokes, snippets and yes, my favorites – cartoon strips!

Okay enough of my chatter. Let’s begin with Mr. Dilbert, the geek.