M M Goaraab (engineer) 23 June 2015

Employee can not join any clients of employer for 6 months

I work for a software services company. the company wants to break contract with our client. But I want to work for the client. Can I join the client directly? I have signed an agreement with my employer to not to join any clients for 6 months after resignation on stamp paper of 100 rs. What will be the consequences for breach of the agreement.

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Kumar Doab (FIN) 23 June 2015

You may show the entire document(s) verbatim that contains such clause and appointment letter also to an able labor Law Consultant/Service Matters Lawyer/Law firm dealing in such matters and spend quality time with your lawyer and provide inputs.

If the document entirely and in toto mentions only ‘Non Compete’ clause then you may breath easy…………….and your counsel may opine that…………………..Indian Courts of law have consistently been declining to enforce ‘Non Compete clauses/agreement’ as It hits clauses of Indian Contracts Act and right to earn livelihood.

However the paper signed by you may contain other clauses too that may very well be enforceable.

For your own interest extract in writing from this so called ‘Client’ that would be your employer that it will appoint you without the need of any acceptance of resignation/service certificate/relieving letter………………….and on the strength of copy of resignation only……………..and it shall bear the entire cost of litigation and its consequences due to any clause/bond/agreement signed by you with your past employer…………………..and shall buy out notice period/pay and make the payment at once on joining without any conditions………..