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ajaykumarsingh (firm)     19 December 2009

Employent with Client Company

Hi, I had been employed with a service based company, say XYZ. During employent with XYZ, I was deputed to their client site, say ABC, for a short period. Now, I have quit company XYZ after resignation. 

Previously, I had signed a contract with company XYZ that I will not be joining on the boards of company ABC for next two years. Also another contract between the two companies was that company ABC must not absorb me as their employee.

Now, company ABC is sold out. i.e. another company PQR has bought company ABC through merger and acquisition.

Also, I have a offer with company PQR. Now, company PQR may ask me to work at previously known ABC site.

[ All relevant information are mentioned above and their are no more twists involved. However, queries are welcomed. ]

Could you please advise me that can I join and work freely with company PQR without any legal notice fear ?

Thanks in advance.



Learning

 3 Replies

V. VASUDEVAN (LEGAL COUNSEL)     19 December 2009

 The Company PQR being a different entity other than ABC and it is PQR who has acquired ABC. Hence Company ABC ceased to exist. Hence you are free to joint PQR. ABC's site would be the property of PQR and not an independent entity and hence you may work on the site

vasudevan

1 Like

ajaykumarsingh (firm)     20 December 2009

Thank You Mr. Vasudevan !

Does above reasoning gets affected in different scenarios such as sold out, merger, acquisitions, etc? Principally, ABC being part of PQR officially.

V. VASUDEVAN (LEGAL COUNSEL)     21 December 2009

 Yes. My view point is based on your information that ABC has been amalgamated with PQR. In such  a situation, ABC ceased to exist. However, if the facts are different please provide the full facts.

Vasudevan

1 Like

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