Darshan (HR) 23 June 2014

Clauses wrt to joining client co. & starting own setup

Hello experts,

I work in a IT company in Mumbai at an VP level wisht to resign from the job. I wish to join our client company who is ready to take me on board with whatever salary i demand. The reason for job change is not getting the salary which i expect, too much work pressure, office timings, unrealistic expectations and future growth.

I have attached two photos of the clauses in our Appointment letter which i believe can go against me. I want to know would my company be able to take any legal actions against me as they would come to know that i am joining my client's company. I will be giving proper handover but i am worried, if it would be legal issue. My client also wants to open an IT company and wants to make me in-charge as well, so there might be also conflict of interest for my current company. I need to know if the terms laid by my current company as mentioned below stands any chance if this matter goes into court. I am not able to take decision because of this, so suggest path forward. I dont want to spoil my relation with my current company.

I want to know every company forms thier own rules and regulations and the employees sign the appointment letter but when such matters come to court, are the clauses mentioned in appointment letter hold valid? or there is some superceding effect...

Please suggest.

Thanks,

darshan

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6 Replies

Dr J C Vashista (Advocate) 23 June 2014

What is your problem?

Kumar Doab (FIN) 23 June 2014

You need to spend quality time with a competent and experienced labor Consultant/Service Lawyer-Law firm more than once and understand the merits.

Non Compete; Indian Courts of law have consistently been declining to award injunctions, and enforce Non Compete Clauses/agreements post termination of employment as it hits the right to earn livelihood and clauses of Indian Contract Act.

Non Solicitation: Don’t solicit on record.

Non Disclosure; Have you been privy to any such information that is termed as knowledge, processes, formulae etc…………………?

If No why don’t you write now and build record that NO such thing has ever been shared with you hence this clause should have been deleted from appointment letter issued to you.

It is almost certain that the moment you join a Competitor the relationship shall spoil until or unless the employer is big hearted and want to spare you……………………….for some reason or for some handle that you may have on him………………………….

Being an HR personnel that too a VP you would understand that in corporate world majority of the times only the selfish reasons matter………………………..being nice is a need for the sake of business only………………………employment is not marriage and employers do not marry employees……………….

Hence prepare now and prepare well for the events that might be possible.

Build record and maintain record.

Keep a good lawyer by your side.

Most Imp. is that you should have a committement from next employer that might benefit from you that it shall not terminate you in case of law suit by past employer…………………….

You should put the clauses and agreements cited by you on record to next employer………………..and have its concurrence to accept/absorb you even in case of such clauses……………..

Defend your interest in the best possible manner…………

T. Kalaiselvan, Advocate (Advocate) 26 June 2014

I think nobody can advise you so properly and in depth on the subject than the above expert Mr. Kumar Doab. Hope you are convinced ?, you may follow his suggestions.