Employement contract
Ammyianamy
(Querist) 22 June 2012
This query is : Resolved
Hi Experts,
I need your advice, please read the scenario below and suggest me:
I am working for a firm from past two years and my firm deputed me to its clients office and now as I am in a process of leaving my parent company, they have made me sign a document which say I cant join the firms where I was deputed for another 12 months. My parent company denied to give me the copy of that contract too.
The client and my parent company does not have any contract between them and they are ready to hire me.
Can I join my client, some one suggested me these types of contracts are void. Please suggest
Regards
Ammy
Devajyoti Barman
(Expert) 22 June 2012
The balance needs to be maintained in view of section 27 of the Indian Contract Act which held contract in restraint of trade as void.
However if the job involved handling some trade secret then joining the rival company immediately after leaving the parent company is held valid.
In your case the nature of your job and your job contract is determining factor.
Ammyianamy
(Querist) 22 June 2012
Thanks for the info Mr Barman
In my case, I am into recruitment and my parent firm is a consulting firm where we hire people for our clients. when my parent company deputed me to this clients place, I was not given access to any of the internal database(candidates details). I do not have any data from my parent company. The company (my client) which I want to join is a Corporate and I want to join them as a recruiter and i do not think there is any trade secret which I will be carrying with me. One more thing the client and my parent company are not working together.
Devajyoti Barman
(Expert) 22 June 2012
Well, then you can move ahead. I do not see any teeth in any probable legal action against you.
Adv.R.P.Chugh
(Expert) 22 June 2012
Dear Ammy,
In such circumstances the contract should not hold valid because it is a contract in restrain of lawful profession. SC has repeatedly held that any contract via which an employee is restrained from taking up a job AFTER END OF EMPLOYMENT AT COMPANY - is not binding. In your case it is purely in restrain of profession and is therefore void. There is no reasonableness. It does not stand to reason how working with this company harm the legitimate interests of your previous employer.
Feel free to talk !
Ammyianamy
(Querist) 25 June 2012
Thanks a lot for your valuable suggestions and information shared by all experts.
Regards
Ammy
