LIVE Online Course on Indian Constitution by Dr. Ravishankar Mor. Register Now!!
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Rajeev Jain   07 February 2022

Employment - non-compete clause while joining client

Hi,

I have the following clause mentioned in my current organization's offer letter under Non-Solicitation / Non-Compete clause,

You will not be employed by a client of Tech Mahindra Ltd for which you performed services while employed by Tech Mahindra Ltd.

I have now received a job offer from the parent company of the client that I am working for currently in my current organization. I have briefly worked for this parent company, 5 years ago temporarily, before being moved to the current client project.

I would like to know if this clause in my employment offer letter will cause any problems if I decide to accept this new job offer.

Regards.



Learning

 4 Replies

Aryan Raj   08 February 2022

Dear Rajeev,

If you leave your job, you are prohibited from working for the company that has offered you the job under the terms of the agreement you signed. Fortunately, courts have recently curtailed the power of non-compete agreements to preserve employees' rights, allowing you to get out of your non-compete agreement (though this is not guaranteed).

Therefore if your former employee is making it difficult to earn a better living for yourself then the clause in the contract will not be enforceable. So I suggest that if a situation like this occurs you must take legal action against the company. 

Regards,

Aryan Raj

Megha   09 February 2022

Hi Aryan,

Could you please provide a caselaw in this regard?

Thank you.

Aryan Raj   09 February 2022

Dear Megha,

These are some of the landmark cases which establish that an employer cannot restrain his employee from joining a new company for making a living under any contract-

Niranjan Shankar Golikari Vs the Century Spinning and Manufacturing Company Ltd.

V.F.S. Global Services Pvt. Ltd vs Mr. Suprit Roy.

Regards,

Aryan Raj 

 

ryderchad4   15 April 2022

I am also a user, I am also wondering about this problem, so this information is very helpful for me, thanks for sharing basketbros planet clicker 2


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  



Post a Suggestion for LCI Team
Post a Legal Query