You'll be committing a breach of this agreement, and TCS may sue you and seek damages, which may be stipulated or not stipulated in the contract itself.
Joining a client company working from onsite
Hi I am working for TCS and is now in UK for an onsite assignment for last two years and now I have received a direct employment opportunity from the client company. However I have signed a International assignment agreement with TCS which has non compete clauses going by "Non-Compete Clause: The Employee agrees that during the period of an international assignment and for a period of one (1) year following the end of each international assignment, the Employee will not seek or accept any employment and/or consultancy or advisory role or engage in any independent business activity with any client of TCS or its Sub Contractor(s) with whom Employee was engaged during the international assignment, to the extent permitted by the laws of the location of international assignment." Now if I join the client company what could be the repercussions of breaching this agreement. Any advise is much appreciated.
Asked 2 years ago in Labour
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6 Answers
- As per the Employment Act, employees have the right to resign at any time, by serving notice or by compensating the employer with salary in lieu. It is an offence for employers to disallow employees to leave their job.
- Further, the Supreme Court has declared in the judgment of the case titled as Sanjay Jain versus National Aviation Company of India Ltd, , that to resign is a right of an employee who cannot be forced to serve in case he is not willing until and unless there is some stipulation in the rules or in the terms of appointment or disciplinary proceedings is pending or contemplated which is sought to be avoided by resigning from the service.
- 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, if you are getting an opportunity in that company , then you can tender resignation , and the TCS cannot sue for the same except to recover the amount of notice period .
If you join the client company it would be in violation of non compete agreement
2) in india any agreement in restraint of trade is void and you can join the company
3) however reasonable restriction is enforceable
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.
It is a standard business practice in many parts of the world for employment contracts to include controls of reasonable scope and duration to protect confidentiality of information, customer connection and other legitimate business interests,"
However since you have signed the offer letter accepting the conditions, you may have to adhere to the conditions.
Dear client,
There could be legal repercussions if a non-compete provision in an overseas assignment agreement with TCS is broken. If an agreement is reasonable in terms of its duration and scope, it is often upheld in India. Agreements prohibiting people from engaging in legal trades, professions, or companies are null and unlawful under Section 27 of the Indian Contract Act, barring reasonable restrictions. Your agreement has a one-year restriction, which sounds standard. TCS may pursue legal action against you and seek damages or an injunction if you violate this non-compete agreement. However, a number of variables, such as the restriction's reasonableness and UK local laws, may affect its enforceability.
Hope this helps you.
You need to pay for the punitive part of the same if agreed by you in the said agreement with company or contest the same on merits in court
