Naga Mani (Graduate) 16 April 2014

Employment with a client after termination

“You will not accept employment or an assignment from any of our clients or their subsidiaries till 18 months of your separation from the organization. “

Hi.. I have worked for an organisation who has X Client, Now the X client has terminated from the organization and is going to start up a company and would be more than happy to offer a job to me. But I am not sure If I should accept it or not.

Even the X client has a similar agreement with the organisation. I want to be part of this new company. Your legal advice please on how can I work and how the new organisation can set up the company in a way that It will not violate the agreement nor I will ?

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Kumar Doab (FIN) 17 April 2014

X (Client of your employer) has already terminated its contract with company (your Employer)!

The line quoted by you indicates employee can not work with client of the company!

X is no more client of the company!

The Indian Courts of law have consistently been declining to enforce Non Compete Clauses/agreements after the employment has been terminated by employer/employee. Such clause/agreements may very well operate during the term of employment.

The contract that client had signed (now terminated) may be a Non Poaching Agreement.

Its enforceability may be examined by a lawyer specializing in such matters.

The above post is generically speaking…………………………………..

You must get all documents examined by a competent and experienced labor consultant/service lawyer specializing in such matters.

The lawyer that has examined the docs on record and your inputs can advice you the best.