Santc4 (Senior consultant) 07 July 2013

Employment agreement breach with an indian company

Hi Experts,

I need your support to understand about few things like in month of February I have received an offer from a Gujarat based company and signed an agreement on their letterhead with the terms and condition some are mentioned below. And way forward joined the company in month of May 26th and came to an onsite assignment now the onsite company has terminated the contract for all the employees and offered me a job with them directly, and that offer is so lucrative so I just want to know what should i do so that this agreement should not violate.

1. That if, for any reason beyond the control and power of the Management, it is not possible to provide you with the similar or better employment for any specified period, you will be deemed to have been laid off, then none of the terms & condition would be applicable for you (except notice period) and it won’t be considered as any breach of the agreement, and would in this respect be governed by the provisions of the Industrial Disputes Act, 1947 or and/or any other enactment relating to lay off from the time being in force.

2. Absence for a continued period of 8 days (including absence when leave though applied for but not granted (and when over-stayed for a period of 8 days) would make you to lose your lien on the service and the same shall automatically come to an end without any notice or even intimation.

3. Your service can be terminated by either side by giving one month’s notice or payment of one month’s salary in lieu thereof

4. Under no circumstance will you join overseas customer or Logas without prior permission from the CEO of the company. A legal action will be initiated in case of any breach of this agreement. But if in case, it is not possible for the company to provide you with the similar or better employment for any specified period, then this term & condition won’t be applicable for you and it won’t be considered as any breach of the agreement.

5. Under no circumstance will you join overseas customer without prior permission from the CEO of company. A legal action will be initiated in case of any breach of this agreement along with a penalty equivalent to two years of net payout (not less than Rs. 36 Lakhs INR) as it would be considered as a business loss to company and costs that company are incurring for carrying an onsite resource. You can not join company's customers direct on indirect for more than 1 year after leaving the company, which would be considered as a breach of agreement and would be subjected to legal action as mentioned above (its not mentioned in the offer letter but this penality is on mail communication and duration is 1 year)

And there are many more conditions so please suggest what should i do as i want to takeup that new offer from overseas client side.