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Non Circumvent agreement

Created by : RENJITH K K, HR Officer, Hindustan Petroleum Corporation Limited [HPCL]  | 12 20 2010 20:08:38 +0000
Industry : IT ServicesFunctional Area : Talent Management(People Management)
Keywords : agreement nca circumvention circumvent
Activity:  241 views;  last activity : 12 27 2010 05:38:44 +0000

Do companies, amongst those who sign an NCA with its employees move to legal action, if its employee quits and joins client office within the agreement period? (also discuss, what are the legal implications on the NCA on the company and the employee)

  
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No, Companies are not interested for such small issues Vs Yes, Companies take is seriously
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The company has a lot of other activities to be coordinated and Legal interventions will be the last thing companies want to attach themselves to. They want to keep their tables safe. If such a case exists in the court of law, prospective employees may think twice for joining such an organisation.

 
By RENJITH K K, HR Officer, Hindustan Petroleum Corporation Limited [HPCL]  12 20 2010 20:08:38 +0000
 
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Hi Ms. Kaur, But should a company preparing to be listed in the NSE/BSE go for such a case against an employee. The employee has not gone to the same job and there is not much implications on the billing of the old company.
By RENJITH K K, HR Officer, Hindustan Petroleum Corporation Limited [HPCL]  12 26 2010 11:17:29 +0000
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Companies would not want to get involved in these issues unless the individual is from licensing /technology field or co. has invested in massive overseas trainings.
By Binda Kanayalkar, Admin & HR Manager, ExxonMobil  | 12 26 2010 08:51:37 +0000
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I am agree with Mr. Renjinath. There are such a few small companies who takes an interest such type of issues.
By Chetan Pancholi, Project Engineer, Tamboli Castings limited  | 12 22 2010 15:03:04 +0000
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Hi Renjith, i think in this case where the overall impact (interms of stability, legalility and financial terms)is not much the company will avoid it..


By Harvinder Kaur, Sr.Executive HR, GPCT India  | 12 27 2010 05:38:44 +0000
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It depends on the extent to which loss has been incurred,it depends on the criticality and billing loss of the project,if the loss is above a threshold amount companies do take NCA for quiting and joining of a resource seriously and have specific legal department or consultant to cater this.Else it is avoided.
By Harvinder Kaur, Sr.Executive HR, GPCT India  | 12 25 2010 07:42:20 +0000
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I think Some of the companies take it seriously. but it depends on the amount of agreement. companies hire lawyers for some other issues also. so they can easily handle such issues through them. and not disturbing the day to day activity.
By girish , Plcement Officer, Department of Management Science, Dr. Babasaheb Ambedkar Marathwada University.  | 12 23 2010 06:35:00 +0000
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Companies take these issues seriously because lot of investment has been made on the employee. This will incur loss to the company.....
By Vikram Dev, Recruitment Manager, Korn Ferry  | 12 22 2010 08:56:47 +0000
Argue for "No, Companies are not interested for such small issues "
Argue for "Yes, Companies take is seriously"
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