• I can't join client company

I have resigned from my previous company and currently serving my notice period. I got an opportunity to join the client company and received offer letter as well. But my current company came to know about this and they told if I join client company, I won't give my settlement money and won't provide experience letter as I worked for 8 years in my current company. Also I never sign any bond stating I can't join client company. 
Please suggest.
Asked 4 years ago in Labour

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22 Answers

Dear Sir,

You are entitled join as per section 27 of Contract Act and also entitled get all the benefits from the present company.

Kishan Dutt Kalaskar
Advocate, Bangalore
6174 Answers
489 Consultations

Just give them undertaking, not joining client company. And if client company want to retain you that tell to keep themselves numb till you not join them. Collect  EL, Settlement, F&F.

Later can join, undertaking/bond given under force is illegal and cannot be enforce in court. Further such bonds are violation of contract law of India.

Yogendra Singh Rajawat
Advocate, Jaipur
22944 Answers
31 Consultations

1. Since you have not signed any bond or non compete agreement with your employer, you will be free to join the client company.

2.  Current company cannot withhold your payment for this reason and they are bound to pay your dues, as well as experience certificate, that too when you are serving the notice period in full.

3.  If you anticipate any problem, you can take the help of an Advocate, who will send a legal notice to your employer and resolve the issue.

 

Shashidhar S. Sastry
Advocate, Bangalore
5323 Answers
327 Consultations

Hi,if your employment was not restrained by any agreement with the current employer,you can join the client company and can seek legal help if they deny to give experience letter 

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

If there was no agreement between you and your previous company about not joining the vlient company then they can't pressurise you into not joining. File a complaint in the labour court in case they refuse to pay you.

Rahul Mishra
Advocate, Lucknow
14102 Answers
65 Consultations

Some employers may require new employees to enter into non-competition agreements before beginning work, and such agreements usually take effect after the employer-employee relationship has ended. Employers may require non-competition agreements for a variety of reasons, including protection of trade secrets or goodwill. However, courts generally disapprove of non-competition agreements as limitations on a former employee's right to earn a living. Therefore, when made the subject of a legal dispute, non-competition agreements are closely scrutinized in the court system.

Non-competition agreements must generally be supported by valid consideration -- the employee must receive something of value in exchange for the promise to refrain from competition. If an employee signs a non-competition agreement prior to beginning employment, the employment itself will be sufficient consideration for the promise not to compete. However, if an employee signs a non-competition agreement after beginning employment, the mere promise of continued employment will not be considered valid consideration for the promise. In this case, the employee must receive something else of value in exchange for the promise. Such additional consideration may consist of a promotion or other additional benefit that was not part of the original employment agreement.

Employers have a right to protect their relationships with their customers and their confidential information, but former employees have a right to earn a living. When the employer and the employee have entered into a non-competition agreement, these interests must be balanced.

The employer cannot hold your relieving order or experience certificate or the F&F settlement despite fulfilling the conditions of employment at the time of resignation. If there is an intention behind such action, you may issue a legal notice demanding the same failing which you may take this matter with the labor commissioner.

T Kalaiselvan
Advocate, Vellore
86630 Answers
2315 Consultations

- As per Specific Relief Act, if any employee quits before the notice period, the Employer can only recover the Notice pay, and the Company cannot force to serve the entire notice period.

- Further, the resignation decision is the employee’s decision, and the employer cannot sue for breach of contract, if the employee leaves without serving contractual notice. 

- Except, recovery of the said amount, company cannot harm you for the same

- Further, no employer can refused to return the original certificates or to issue relieving letter .If they are doing so, their act is illegal, unjustified and against the fundamental rights of the employee.

- Further, the employment bond with the negative covenant is valid and legally enforceable, if the parties agree with their free consent i.e. without force, coercion, undue influence, misrepresentation and mistake, but it is not enforceable, if it is either one sided, unconscionable or unreasonable.

- Further, section 27 of the Indian Contract Act prohibits any agreement in restraint of trade and profession.

- Hence, your previous company cannot refuse for settlement money and providing experience letter legally , if doing such , then acts are against the law. 

- Send a resignation written letter , and if refused to provide the same, then send a demand legal notice for the same.

- Join the new company , the previous company is bound to reimburse the same to you. 

 

Good luck and dont forget to rating Positively. 

Mohammed Shahzad
Advocate, Delhi
14242 Answers
216 Consultations

You are at liberty to join client company after serving notice period 

 

2) any agreement in restraint of trade is void 

3) you can sue your employer to recover your outstanding dues 

Ajay Sethi
Advocate, Mumbai
96426 Answers
7773 Consultations

You just pass this same message to client company if they are ready to take you on your experience and interview question answer passed by you without experience letter than no worries you can join client company. and letter on you can force to them to give your all settlement amount of your employment.

Ganesh Kadam
Advocate, Pune
12959 Answers
260 Consultations

Hello, 

 

If you have not signed any bond and no condition was imposed by your current company at the time of joining or subsequently through some contract then you are free to join your client company. 

If they do not clear the dues etc then you may go ahead and file a case against them. 

 

Regards 

Anilesh Tewari
Advocate, New Delhi
18088 Answers
377 Consultations

If you have not signed any such bond which have completed  clause which prevents any employee to join similar business or start similar business as of the present company you are free to do join  the new company in case your present company is not is not willing to pay final settlement you can take it from the court by filing a money suit along with your experience latter. only in case you have signed any such of a letter complete class your present company can force you not to join any company which is the client official company as well as starting a similar business

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

You need to send them legal notice and later complain to labour commissioner office or labour court

Prashant Nayak
Advocate, Mumbai
32330 Answers
194 Consultations

Ans: there is a judgement of Zaheer Khan which states that no company can tie it's employee whether resigned or on notice. You can go ahead and work in your clients company..

Garima Anil Mehrotra
Advocate, Mumbai
514 Answers
1 Consultation

You can move labour court

Netra Mohanchandra Pant
Advocate, Navi Mumbai
1567 Answers
5 Consultations

If they are threatening you firstly finish exit formalities thereafter send them legal notice asking for the amount and if they fail to repay file a civil suit for recovery of money. Firstly try to get experience letter if your new company require the same. Since there's no bond they cannot restrict you from joining client company 

Swarnarka Chowdhury
Advocate, Mysore
1879 Answers
5 Consultations

1. Your previous employer cannot refuse to make full and final settlement on the ground that you have joined the company of one of his clients. He is bound to make the full and final settlement if you have resigned according to your contractual obligations and served the notice period.

2. Serve a lawyer's notice to him if he does not release the settlement within a reasonable time (say 1 month) and then file a suit for mandatory injunction against him in the civil court.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

There is no need for you to worry.

You can join your client company after serving your notice period.

There is specific provision of law i.e., agreement in restraint of trad is void.

Thus, based on above, you are at liberty to sue your present employer, if he fails to settle your F&F, Gratuity and other dues.

 

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

Dear Sir,

You are suggested not to give anything in writing, share to any friend even that you are joining with client company. Also, talk to HR of client company and ask them not to disclose. After getting out of here, you will be free to do as per your wish. 

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

Join the company as per your choice and no need to worry about the settlement amount, they are bound to pay you the same but as you are not completing the notice period then they may deduct the amount for notice period as mentioned in your appointment letter. so no need to worry. 

 

Feel Free to Call

Nadeem Qureshi
Advocate, New Delhi
6307 Answers
302 Consultations

You can go ahead and to receive your benefits you may have to file a specific performance suit against your previous company. 

I advise that in order to avoid any legal battle with someone you must wait until the notice period is over.

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

1. Your current employer cannot stop you from Joining clients company.

2. They even cannot stop your settlement amount and experience certificate on this ground.

3. You can sue your employer to recover final settlement amount along with interest and experience certificate.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

First go through the Terms of your employment you have signed with your precious company. 

Mohammed Mujeeb
Advocate, Hyderabad
19306 Answers
32 Consultations

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