• Partner company offering position.

I’m employed by company A working for Company B which is partner of A. 
Here is the NDA OF A. Can i join partner B as I’m full time working for past two years there. 
Only payroll is handled A.

NON-SOLICITATION
7.1 I agree that for a period commencing on the date of this Undertaking and ending two years after I cease to be employed by the Employer:
(a)
I will not, directly or indirectly, hire or attempt to hire for any purpose whatsoever (whether as an employee, consultant, advisor, independent contractor or otherwise) any employee of the Employer or any person who was an employee of the Employer at any time during the last twelve months of my employment with the Employer, and shall use my best efforts to prevent any of my subsequent employers or related entities or persons from taking any such action. I will not (i) disclose to any third party the names, backgrounds or qualifications of any employees of the Employer or otherwise identify them as potential candidates for employment (b) personally or through any other person, approach, recruit or otherwise solicit employees of the Employer to work for any other employer; or (c) participate in any pre- employment interviews with any person who was employed by the Employer, while the Employee was employed by the Employer.
I shall not, on my own or on behalf of or in connection with any other person, directly or indirectly, in any capacity whatsoever including as an employer, employee, principal, agent, joint-venture partner, partner, shareholder or other equity holder, independent contractor, licensor, licensee, franchiser, franchisee, distributor, consultant, supplier or trustee or by or through any corporation, cooperative, partnership, trust, unincorporated association or otherwise:
Canvass or solicit the business of (or procure or assist the canvassing or soliciting of the business of) any customer or prospective customer of the Employer; and / or;
Accept (or procure or assist the acceptance of) any business from any customer or prospective customer of the Employer; and / or;
Supply (or procure or assist the supply of) any goods or services to any customer or prospective customer of the Employer.
I shall not on my own or on behalf of or in connection with any other person, directly or indirectly, in any capacity whatsoever including as an employer, employee, principal, agent, joint-venture partner, partner, shareholder orother equity holder, independent contractor, licensor, licensee, franchiser, franchisee, distributor, consultant, supplier or trustee or by and through any corporation, cooperative, partnership, trust, unincorporated association or otherwise, interfere or attempt to interfere with the Employer’s business or persuade or attempt to persuade any customer, prospective customer, employee or supplier of the Employer to discontinue or alter such person’s relationship with the Employer.
(b)
(c)
i.
ii. iii.
7
Asked 2 years ago in Labour

First answer received in 30 minutes.

Lawyers are available now to answer your questions.

9 Answers

You cannot join B company as you are in payroll of A and have been assigned to B 

 

you can resign from A and after 2 years join B 

 

 

Ajay Sethi
Advocate, Mumbai
99755 Answers
8143 Consultations

You seem to have been deputed by your employer A company to company B who is partner of A. Your employment with B is on deputation basis. You are still employee of A company and is bound by NDA. Payment of salary by A company also confirm your employment. So in the light of NDA you cannot join B company. 

Siddharth Srivastava
Advocate, Delhi
1551 Answers

If you join B company A will sue you for damages 

It is an associate concern of A 

 

better take A into confidence and after their consent join B 

Ajay Sethi
Advocate, Mumbai
99755 Answers
8143 Consultations

The NDA clause you signed  with your company  A is clear about it which has restrictive clauses o this arrangement that you propose now.

You are working for company B on behalf of A, it can be termed as a deputation and this can be possible only after you have agreed to accept this arrangement by your original owner.

In fact you are on the pay rolls of company A, hence the idea of becoming partner with B during your employment A is not legally permissible owing to the clauses that you have accepted and signed in your employment offer letter. 

T Kalaiselvan
Advocate, Vellore
89957 Answers
2490 Consultations

What is the basis that you are working for B while you are employed by A?

It can be seen taht it is an indirect outsourcing by A to work for its customer i.e., B.

Besides, your employment conditions may not permit you to be a partner to other company while you are employed as a full time employee. 

You may consult with an experienced lawyer either from this forum or outside with all relevant papers and take a decision as suggested.

T Kalaiselvan
Advocate, Vellore
89957 Answers
2490 Consultations

It should mention partner 

Prashant Nayak
Advocate, Mumbai
34494 Answers
248 Consultations

You can join.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

- As per the mentioned terms and conditions , you are not allowed to work for Company B , as it is clearly mentioned 

that " shall not on my own or on behalf of or in connection with any other person, directly or indirectly, in any capacity whatsoever including as an employer, employee, principal, agent, joint-venture partner, partner.

- Since, you have entered into an agreement/contract with the A, then you are bound to comply the NDA signed by you. 

- Further, on the written approval of Company A , you should join the B. 

Mohammed Shahzad
Advocate, Delhi
15799 Answers
242 Consultations

Dear Client,

Based on the non-solicitation clause in your NDA, you cannot join Company B after you leave Company A. The clause prohibits you from hiring or attempting to hire any employee of Company A for a period of two years after you leave. Company B is a partner of Company A, so it would be considered an employee of Company A under the non-solicitation clause.

Even though you have been working full-time for Company B for the past two years, the fact that payroll is handled by Company A means that you are still technically an employee of Company A. This is because Company A is still responsible for paying your wages and benefits.

If you want to join Company B after you leave Company A, you will need to get a waiver from Company A. A waiver is a legal document that releases Company A from its obligations under the non-solicitation clause. You will need to provide Company A with a good reason for why you want to join Company B, such as a better opportunity or a chance to work with a different team.

If Company A refuses to grant you a waiver, you will not be able to join Company B until two years after you leave Company A.

 

Anik Miu
Advocate, Bangalore
11008 Answers
125 Consultations

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer