NOC to client to hire laid off employee

This query is : Resolved 

20 June 2019

Hi Sir/Madam, need one suggestion. One of my friend was working for one organization since last 4 years and 10 months. He was deployed on client site. Now client has decided to discontinue all contractual services. When this message was sent to his parent organization, parent organization communicated to deployed employees that since they do not have further projects/ clients, so they will be relieved after given date of client from parent organization also(lay-off). My friend requested to his client organization and they have agreed to offer him on roll job but now parent organization is not giving NOC by saying that client should clear all previous payment, 2 months salary of employee and replacement of that employee and most important they should come to his office and request. There is an agreement that no employee can be hired by client within 1 year of leaving the parent organization. We want to go legally in this case. Is there any clause or rule which can help?

Adv Shailendra Deshpande Online (Expert)
21 June 2019

Clearing of F& F is responsibility of parent organization and can't be dependent on payment from client. He can send legal notice to employer to release his F&F and any other documents, if any taken by him. Employer also cant restrict employment of any person, but it needs to be checked with agreement terms whether it is Non Competition Agreement or not. .

M V GuptaOnline (Expert)
01 July 2019

NOC from the present employer may not be necessary if your employment with the client takes place after your present employer relieves you from his service. Hence you may request the client company to appoint you after the contract with your parent company expires..

Raj Kumar MakkadOnline (Expert)
16 December 2019

This is general practice in the corporate sector wherein full and final accounts are settled first and then only further new era though in the same organization starts on the same or the new post so nothing bad to follow the dictum of the organization.

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