Shalabh Jain (SM) 29 May 2012

Consultant contract

Hi,

I am taking up a content developemnt consultative full-time contract from a US client for long term basis. The client cannot hire me as an employee for now. Till 6 months, I will be as a consultant the an employee.

There are few terms and conditions, I wish to highlight...

1. Can an employer/Client put a condition of NOT joining cient's cometetion(Solely decided by client), even after resigning from it till 12 months? Is it really legal?

2. Is mere signing on simple 'Consultant Agreement' paper without Bond paper can be trated as enforceable document?

I and my client will enentually turn employee-employer in 6 months. I and client are in great rapport. I do not wish to create any fuss out of this.

Pl. guide.

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3 Replies

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com)) 29 May 2012

Dear Mr.Jain,

1. A condition that the employee shall not join any competition for any term more than his term of employment is bad and void to that extent. Law holds such term as 'in restrain of trade' and hence void, however any such restriction during term of employment would hold good, for eg: 6 months here.

2. Yes, even oral contracts are enforceable.

Feel free to talk !