Hello,

1. Non-Compete Clauses

• While Working:
  Companies can ask employees not to work for competitors or start a similar business while they are still employed. Such conditions are usually valid.

• After Leaving the Job:
  In India, asking someone not to work for a competitor after leaving the company is generally not allowed. As per Section 27 of the Indian Contract Act, 1872, any agreement stopping a person from doing lawful work or business is usually not valid.

2. Non-Solicitation Clauses

• Validity:
  A company can stop a former employee from contacting or taking away its clients after they leave. Courts in India are more willing to accept such clauses compared to non-compete clauses.

• Meaning:
  It means after leaving the job, the employee should not try to get business from the company’s old clients whom they dealt with during their job.

3. Legal Rules and Exceptions

• General Rule:
  In India, any agreement that stops a person from working freely is void.

• Exceptions:
  There are few cases where restrictions are allowed, like between business partners — for example, not competing with each other after ending the partnership.

4. Important Points to Remember

• Reasonable Limits:
  Restrictions must be fair — for example, for a limited time, in a certain area, and only for specific business activities.

• Protecting Business Interests:
  If a company wants to protect its trade secrets, client lists, or confidential information, some restrictions may be accepted by courts.

5. Common Examples

• A software company might add a clause that stops an employee from joining their client’s company for some months after resigning.

• A non-solicitation clause might prevent a former employee from contacting old clients to give the same service through a new company.

Conclusion
In your situation your pevious company cannot enforce any rights unless there is an explicit and technical clause in the service agreement that attracts your situation, else you cannot be barred from joining your client company .

Hope this helps.

You may not that there are no legal restrictions preventing you from joining a client company after resigning from your previous employer, especially if you haven't signed a non-compete agreement.

Your previous employer cannot automatically prevent you from joining a client company after your resignation and since been relieved properly by issuing a relieving letter also.

The courts generally disapprove of non-competition agreements as limitations on a former employee's right to earn a living.

You can issue a reply notice to the company through your lawyer denying their allegations and inform them politely that they cannot restrict your constitutionally protected rights for employment of your choice especially in the absence of any bond or any condition of employment earlier.

You are no linger an employee of the company 

there is no legal bar to you joining client company 

ask client company whether they would be willing to bear the legal expenses in case ex employer files any case against you 

don’t sign any non compliance agreement 

Dear Client,

Non-Compete Clauses & Indian Law

In India, any contract that restricts a person from finding employment after leaving an organization is generally void and cannot be enforced under Section 27 of the Indian Contract Act, 1872.Non-compete clauses apply only while you are working, not once you’ve left the company.Indian courts have time and again held that post-employment restraints-such as not joining a client or competitor-are not legally enforceable.

Your Specific Situation

You never signed any non-solicitation or non-compete contract forbidding you from joining the client company; only the appointment letter was signed, and that is not against post-employment opportunities. Your appointment letter clause limits you only from working elsewhere when you are working with your earlier employer, and it is not applicable not post-employment.Unsigned document or company policy cannot be implied and enforced against you at any point in time as stated by the courts in previous similar scenarios.

Legal Notice & Threat of Civil Suit

The notice and request to sign an agreement of non-compliance are now legally irrelevant as you are no longer their employee and you did not give your prior consent to such conditions during your tenure.A civil suit or injunction against you for your joining the client company is unlikely to be upheld the in court against you, as such limitations are null and void in India.This should not impact your employment at the client firm or any of the future job that you choose to take up, provided that you have not obtained or used confidential information or trade secrets.

Generally, companies prohibit their former employees from joining their clients for a specific period after termination of their employment, by what is called a 'non compete' clause. As you agreed to be governed by the rules of the company as evident by the clause in your appointment letter, the company may invoke the 'non compete' clause. You are, however,  free to join any other company not having any business relations with your former employer.

Based on the facts shared, here is the professional legal assessment:

1. No Binding Non-Compete Clause Post-Termination:
   The clause in your appointment letter primarily restricts dual employment during the tenure of your employment. There is no express clause that restricts you from joining the client company after you have been relieved. Furthermore, since you have not signed any separate non-compete or non-solicitation agreement, the employer cannot unilaterally impose post-employment restrictions, especially not retroactively.

2. Company Policies Are Not Binding After Exit:
   While the appointment letter states that you are governed by company policies, such policies are applicable only while you are in active service. Once you are relieved and issued an experience and relieving letter, those policies no longer bind you, unless they were incorporated in a signed agreement with post-employment obligations.

3. Attempt to Enforce Post-Employment Restrictions Without Agreement Is Legally Weak:
   Indian courts generally do not enforce post-employment non-compete clauses under Section 27 of the Indian Contract Act, 1872, as such clauses are considered restraint of trade and hence void. Exceptions apply only in very limited scenarios involving confidentiality or trade secrets, which is not evident in your case.

4. Legal Notice and Civil Suit:
   Sending a legal notice does not amount to initiation of a legal suit. If the previous employer initiates a civil suit seeking injunction or damages, they must prove:

   • That a legally valid and binding post-employment non-compete agreement exists (which it doesn’t in your case), and

   • That your joining the client company has caused them direct loss or breach of contract.

   Given that you were contacted directly by the client company two months after your employment ended, and you did not solicit the client while in employment, the chances of the employer succeeding in a civil suit are very low.

5. Impact on Current Employment:
   Unless your current employer (the client company) is concerned about litigation or has internal obligations with the former employer, your joining should not be affected. You may, however, inform them of the situation transparently and provide the relieving and experience letters to demonstrate that you left properly.

Recommendation:

• You may respond to the legal notice stating that there is no contractual restriction prohibiting your employment with the client company and that any attempt to restrain your right to livelihood is legally untenable.

• Maintain a record of all communications.

• If the former employer initiates any legal proceedings, you may contest it strongly on the above grounds.
  For any further details feel free to reach out to me at Legal Corridor

Thanks & Regards
Adv. Aman Verma
LegalCorridor

You cant join the other company till you are in employment of the previous company 

"while under the active Employment of Company". The non-compete clause is only enforceable while under employment of your previous employer. Once you quit, it no more applicable to you. 

No, this clause does not prohibits you.

Don’t sign any agreement they send you now! You are not their employee anymore. 

They do not have any case against you.

- Since, the said company already relieved you and issued an experience letter then the contact between you and the said company ended

- Further, if the said condition was not mentioned in the offer letter which you have joined at the time of joining that company then after the relation of employee and employer ended they cannot put any condition on you. 

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

- You can deny for signing the same or send a reply. 

Sir/Madam,

From the facts disclosed in your query, it is clear that no such binding was imposed at the time of joining/offer letter and no restriction of joining client company. However, it is not clear from your query as to how the joining  and working with the client company might hamper the interests of the previous company. If this does not hamper in any manner, then previous company is at fault in issuing the legal notice.  

Do not sign anything given by your previous employer, as you are not bound by them. In absence of any noncompete, you can join the client company.