• Resigning from Job to get the better opportunity

I have resign from the job and got the acceptance mail but they have mentioned a point that 'You can not join the same client from the date of termination for 1 year'. And I got the offer letter from another company and the client is same.

Please help me what will I reply and In this COVID situation, how can I escape from this clause .
Asked 4 years ago in Labour

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17 Answers

You join it, further course of action will be briefed as per their action

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

If you have not signed any bond with your previous company than you can join mentioning in the resignation reply letter not to join same company its just formalities.

 

In client company the position will be not exact same on which you were working in your previous company. So no need to worry you can join in the new company.

Ganesh Kadam
Advocate, Pune
12910 Answers
253 Consultations

4.9 on 5.0

Any agreement in restraint of trade is void under provisions of Indian contract act 

 

2) after resignation you are at liberty to join the client 

 

 

Ajay Sethi
Advocate, Mumbai
94518 Answers
7485 Consultations

5.0 on 5.0

Hello, 

  1. If you do not have any such Noncompete clause in your employment agreement/appointment letter, you don't need to bother. 
  2. You are not picking obligated to comply with any new demands at the time of your resignation from job. Your right to seek better employment is guaranteed in law which can't be limited by any company. 
  3. If you have to accept in reply, do do without having to worry. 

S J Mathew
Advocate, Mumbai
3545 Answers
175 Consultations

5.0 on 5.0

Sir

You need not worry as these kind of clauses are mere formalities and are void in law, so you can always ignore and proceed with the new office. 

Archit Vasudeva
Advocate, New Delhi
260 Answers
2 Consultations

5.0 on 5.0

if this restriction is there in the original employment contract, then it will bind you

if it was not there in the original employment contract/bond, then the company cannot now unilaterally impose this restriction on you

Yusuf Rampurawala
Advocate, Mumbai
7483 Answers
79 Consultations

5.0 on 5.0

If your offer letter or appointment clause mentions about any non competing clause then you should legally avoid joining the said company. They may take action against you for the same if they suffer any loss from sharing of confidential knowledge and various acts detrimental to them. It depends on your to take a call

Prashant Nayak
Advocate, Mumbai
31802 Answers
175 Consultations

4.1 on 5.0

You can join your client company but you should take care of one thing that you can not share any trade secret of your previous company to your new company for a reasonable period of time say one or two years based on trend of change in that particular field of business , in default your previous company may drag you in legal dispute.

 

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

5.0 on 5.0

Such clause not valid in India. Go ahead and join the company. Dont reply anything.

Yogendra Singh Rajawat
Advocate, Jaipur
22595 Answers
31 Consultations

4.4 on 5.0

Respected sir ...

Just mention the situation just because of what you left that job sir there is article 21 of the Indian constitution which clearly states that no-one can Stop you from doing the job ...and there clouse have violated that article so that clouse is void itself you need not to worry just join the job and if they say something then serve them a legal notice mentioning all the facts and circumstances ....They can't stop you from doing the job...

 

 

Thanks

Dinesh Sharawat
Advocate, Delhi
1263 Answers
12 Consultations

4.9 on 5.0

You need not reply to them.

Just take your relieving letter, experience certificate and get your F&F settled.

Any condition in restraint of trade is void as per provisions of Indian Contract Act.

Once you are relieved / leave your old company, you are at liberty to take up job with competitor also.

 

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

5.0 on 5.0

If you have got the relieving letter then you better join the new company as per your choice.

The previous company cannot restrict you from joining the client's company, in case they initiate any legal steps also in this regard, you can challenge the same properly because their case is not maintainable. 

The Non-compete clause finds place under the agreements and contracts throughout the globe. When we see the Indian legal scenario about the non compete clause, it is prohibited under the Law of Contracts.

Section 27 of the Indian Contract Act-1872 provides that ”Every agreement by which anyone is restrained from exercising a lawful profession or trade or business of any kind, is to that extent void”

 

Indian law is therefore very clear and strict on this point, any such non compete agreement shall not be binding on the parties and the same shall be null and void. By using the term void ab initio, for such type of agreements it has shown that it has kept such non compete clause in the agreements beyond consideration. Indian courts have also consistently refused to enforce post termination non compete clauses in employment contracts as “restraint of trade” is impermissible under section 27 of the Indian Contract Act-1872, and have held them as void and against the public policy because of their potential to deprive an individual of his or her fundamental right to earn a living.

 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

- 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, you are free to join to another company , and not bound for the same as mentioned . 

Mohammed Shahzad
Advocate, Delhi
13095 Answers
195 Consultations

5.0 on 5.0

1. Any embargo placed by the employer on the right of employee to seek employment in any of his clients is opposed to public policy, hence illegal.

2. You are free to join the client company.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

Most companies have their employment contracts written in a way to protect their interests and prevent their employees from joining competitors.

Usually these have a time limit of 6-12 months, which means, you can join a client or a competitor after that period has lapsed.

 

 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Dear Sir,

You are to clarify that you are joining other company and not the same client. 

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

1. Your current employer cannot stop you from joining any company whether they are clients of current employer or not. 

2. You can join new employer without any hesitation.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

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