Company cannot stop you from working with competitors if you are terminated

Question: I have been employed at a private company for over 10 years. Five years ago, my employer asked me to sign a document acknowledging that I had received my end-of-service gratuity, with the understanding that they would pay it to me at a later time. To date, I have not received this payment. Recently, my employer terminated my services and is now refusing to pay my outstanding dues, citing the signed document as proof that I had already received my gratuity for the previous five years. Additionally, my employer is invoking a clause in the employment contract prohibiting me from working with a competitor.

What steps can I take to ensure I receive the end-of-service benefits I am owed, both for my previous and current service? I would appreciate your advice."

Answer 2 – In response to your question, I would advise you as follows:

Under Article 65/3 of the labor law, any condition that violates the provisions of the law, even if established prior to its enactment, is considered null and void unless it is more beneficial to the employee. Additionally, any release, reconciliation, or waiver of rights stipulated by law will be considered invalid if it contradicts legal provisions.

The document you signed could be interpreted as a waiver of your rights, unless you were actually paid the gratuity at the time. To claim your end-of-service benefits, you should file a complaint with the labour office. This will allow you to formally request the full amount due to you from the time you joined the company until the termination of your employment.

The burden of proof will be on you to demonstrate that you did not receive your gratuity, as indicated in the signed document. To strengthen your case, it may be helpful to consult an expert and request that your employer provide evidence of the payment, such as bank transfers or other documentation confirming the transaction.

Regarding the non-competition clause, this condition becomes invalid if the termination of your contract was initiated by the employer or due to a violation of their legal or contractual obligations. According to Article 10 of the labor law, the non-competition clause is rendered null and void if the employer terminates the contract in violation of the law.

I recommend pursuing both the gratuity claim and challenging the non-competition clause based on these provisions.