Non-compete contract : know facts before you sign

Published on Wednesday, Mar 18, 2009

Among the first things employers do on hiring a new employee is to get him to sign a ‘non-competition’ agreement. Most often, the new hire is so gung-ho about starting the new job that he rushes through the hiring formalities, signing the numerous papers without a second thought.

That’s mistake number one. A while into the new job, the employee is already looking for a better deal and is quite prone to jump at the sight of a more lucrative offer.

That’s mistake number two. Even as he puts in his resignation papers/signs up with the new company, the management brandishes the ‘non-compete’ clause in the employee’s face, which immediately takes the wind out of his sails.

The end result is a long-drawn out legal tussle that may even finish off the helpless employee as he often has to pay dearly - sit on the sidelines and watch his promising career getting tattered and ruined!

Today’s tough economy is making employers more paranoid about losing their intellectual capital- staff to the competition.

They incorporate cast iron and legally enforceable contracts to guard everything from trade secrets, know how, critical research, customer information, client lists and other confidential information.

So, don’t kid yourself that non-competition clauses are restricted to technology and finance sectors or C-level jobs.

Increasingly, even entry-level employees in varied industries are required to sign the obligatory post-termination restrictions.

Though the constraints vary from industry to industry, they broadly restrict departing employees from working for competitors, setting up a competing business and canvassing old customers for a set period.

So great is the distrust that employers do not hesitate to renege on the job offer at the slightest sign of refusal.

They are also not beyond waving the contract in your face at the first whiff of departure, thus effectively controlling attrition rates.

After all, with most companies in the industry being considered competition, there is no place left to go. You have no choice but to stay!

High stakes: The non-compete clause effectively places shackles on employees, becoming an unassailable roadblock for future employment.

The organisation gets a monopoly on its employees as it can bar them from work and prevent them from earning a living.

Leave alone getting a new job in a competing company, you often cannot afford to moonlight either.

The slightest violation of the contract will entail legal action, which can not only cause you to quit the new job, but also pay monetary damages for the same.

After the monstrous cost and trouble, you end up quite unable to find a decent job, at least for a long while. In other words, you are locked in!

What to do:While you have no choice but to sign and agree to the restrictive covenants, doing it carelessly will only bring untold regret and despair later on.

It makes sense to carefully read and understand the fine print as well as clarify any ambiguities.

It is especially important to realise two factors – the time span and the geography of the covenant.

The specified period of time restraint generally varies from six months to a year, though in some cases, it can extend to even two years. Similarly, it will be applicable in a particular territory like country, state, city or limited areas.

Similarly, even the scope of prohibited activities should be clarified.

While the organisation can prevent you from doing similar work for the competition, it cannot impede you from engaging in other forms of employment even in a competing firm.

If possible, try to negotiate the terms to wiggle in some breathing space by narrowing the scope of the restrictions.

A top employment lawyer suggests, “In lieu of a traditional non-compete contract, try to angle for a ‘non-disclosure’ or a ‘non-solicitation’ agreement”. This is because non-disclosure provisions only inhibit you from revealing trade secrets and confidential details to outsiders while a non-solicitation agreement simply prohibits you from soliciting current clients of the company. In both cases, you can actually start working immediately after you leave the company.

Employment experts even suggest seeking legal counsel to understand the terms before putting your signature to the contract.

Though a costly avenue, it is actually worth it when it comes to safeguarding your future interests. What’s more, the lawyer can even attempt to negotiate more beneficial terms on your behalf.

But, you have to tread with great care as one wrong move can jeopardise the job offer, which none of us can afford today.

As a general rule, keep in mind that the organisation should be able to prove a valid purpose or legitimate business interest for implementing the restrictive covenants.

There should also be adequate consideration for the constraints, though often it can be as simple as the job offer, a promotion, increase in pay or some other perquisite.

Yet, broadly written and unreasonable covenants are not enforceable.

In all other cases, it is advisable to work in a related area as you ride out the restrictive time span without conflicting any of the terms of the contract.

The other option is to face legal charges… Make your choice!

PAYAL CHANANIA

Avoid using lunch hour for work

Published on Wednesday, Mar 11, 2009

With the growing fad of grabbing a quick bite on the go or even working right through your lunchtime, most people can be forgiven for growling, “Lunch hour? What’s that?”

Well, truth is that the lunch hour still exists, though many companies have taken to cutting the actual duration.

And apart from eating lunch, there is much more you can squeeze into the allotted time.

Contrary to what this appears like, we in no way commend beating the recession demands by making the lunchtime an extension of your work. Conversely, you should make it a point to respect the almost inviolable ‘sanctity’ of your midday break.

This is a time to relax and relieve at least some of the stress of the otherwise totally hectic work schedules. And this is possible only when you get away from that binding desk of yours! No more tapping away at the keyboard, browsing the Internet, checking emails or taking calls while you gobble down your food.

In other words, the golden rule is, never ever lunch at your desk.

Next, actually sit down in the cafeteria or some other relaxing place and savour your meal.

Slowly enjoy the respite sans your laptop, files or notes to spoil the pleasure. Some experts actually advocate scheduling your regular lunch hour on your calendar to make sure that you are left undisturbed.

Apart from relishing your lunch, there are ways in which you can creatively maximise the limited free time at your disposal.

Step out – Like most employees, you are most likely stuck indoors all day. So, the lunch hour is your only chance to escape the confining brick walls. Stepping out for a few minutes of fresh air in the park or walking down to your favourite restaurant will do much to recharge your batteries. Else, the least you can do is step into the hallway or balcony as you chat with a friend or colleague.

Again, ensure that the conversation is strictly non-work.

Pack your own lunch – Most people habitually head straight for the nearest cafeteria or vending machine as they munch-and-rush through the food. Not only do you waste precious time waiting for your turn in serpentine queues, but such a meal is also loaded with excessive salt and calories. The end-result is a drowsy mind and unproductive body that is incapable of getting much done.

Instead, why not spend a few minutes on packing a low fat and low carbohydrate lunch for yourself in the morning? You can choose varied healthy options like grilled food, whole grains, sandwiches, salads and fruits that will keep you alert and productive.

Start a lunch group – Try to lunch together with a group of friends/co-workers where you can relax and enjoy your food over some friendly banter. Again, strictly steer clear of work-related topics. If you have to talk about work, try to be positive and let the creative juices flow as you explore ideas or discuss how to tackle problems.

Catch your beauty sleep – Many employers have also started believing that a short nap during the day leaves employees feeling quite refreshed.

Published on Wednesday, Mar 11, 2009

So, if you get a chance, curl up for a catnap. Else, you can even while the time by reading a book or listening to your iPod – a sure shot way to break the work tension and return to work feeling invigorated.

Running errands – Some people deem that the lunch hour is the perfect time to finish personal errands like paying bills, buying groceries or making phone calls.

While this does hold true, do keep in mind that the running around can often leave you more tired than usual.

So, keep in mind that the lunch hour is your personal space where you can disconnect from work and de-stress yourself.

Try the above simple tips and you will surely slide back into your cubicle with greater concentration, motivation, positivity and efficiency in tow.

As a top consultant and trainer puts it, “That 30-60 minutes can really give a much-needed break and be very beneficial to those you work for and for yourself!”

PAYAL CHANANIA

Keep your e-resume in popular format only

Published on Wednesday, Mar 04, 2009

In today’s information age, online resumes have become the new job search standard everywhere. A well-written e-resume - with the information stored in a database and available in multiple formats - is a vital and dynamic tool for jobseekers.

What’s more, with most of the employee hiring moving to the cyberspace and many companies actually requiring candidates to apply online for their open positions, an electronic resume is an absolute necessity for those seeking employment.

As writers Susan Whitcomb and Pat Kendall emphasise in their book,E-Resumes: Everything You Need to Know about Using Electronic Resumes to Tap into Today’s Job Market, “It’s nearly impossible to conduct a job search these days without some type of e-resume. In fact, it’s a safe assertion that the only job-seekers who won’t need an e-resume are those who want to work for an employer that doesnotown a computer!”

Yet, there is no need to panic for our not-so-net-savvy friends, as an online resumedoes not differ much from the traditional one. The major variation lies in the mode of delivery – over the Internet as opposed to the usual post or fax. Besides, not only is an e-resume easy to build and timesaving, it is also the most impressive way to share, manage, track and update your professional minutiae.

The online resume opens the door to a versatile set of options. You can use it in different ways like emailing to an employer (as an attachment or in the body of the email), submitting applications for job openings on company websites or uploading it as your own personal web page.

You can also post it on various job portals either in its entirety or piece-by-piece based on the profile forms. These job board databases are searched daily by thousands of employers, providing mind-boggling exposure to infinite employment opportunities.

Formats

The web provides new and more effective means of processing and working with resumes. The basic format is a text-based (ASCII) resume. It is developed in a text-editor with plain text sans any formatting, like the text in an email. This is the most-widely used format as it can easily be emailed or posted on job boards.

If you are using a word processor, like Microsoft Word, it is advisable to skip the formatting of varied fonts, indents or rule lines as it may end up quite disfigured when posted. Keep it content-driven without any appealing formatting or graphics. But you can still make it look fetching by using different headings, bullet points or emphasising with capital letters.

To cover every contingency, net-savvy users prefer to create various formats like Rich Text (RTF), Portable Document Format (PDF) and Web-based (HTML).The HTML web page version is visually pleasant and helps you to control the layouts, colours, margins, tables, links and several other items on the web page. But the fallout is that it can display quite differently based on the type of browser and other settings.

Even the PDF format offers embedded documents with improved formatting for viewing text images, more like a graphical picture. But again it requires specific software for viewing.

Yet, there is no universal resume format as many companies have a rigid setup and accept only specific file formats like Microsoft Word or HTML, rejecting other versions outright. If there is no specific mention, it is best to send a word document as an attachment. But make sure that you name the document with your own name to avoid any confusing mix-ups.

As such, an online resume does not have to be limited to the traditional one or two pages format and can also demonstrate skill development and growth over the course of your career. But be careful as companies and even job boards often limit the number of words and file size.

You can either develop your own resume with the help of the abundant resume layouts, styles, templates and other writing tips available on the web. Else, hire the services of resume writers to create a professional and efficient one.

By now it’s quite clear that an online resume is an utter must-have – the best way to toot your horn and realise your full potential. But while it’s true that employers prefer to receive electronic resumes and most paper-based ones are immediately consigned to the dustbin; you still cannot afford to completely do away with it. In fact, experts constantly exhort that candidates should always print out their resumeand carry hard copies to job fairs and interviews.

PAYAL CHANANIA