Corporate law
Can my previous employer restrict me from joining their client?

Currently I'm working in an Indian IT firm. When I joined my employer I signed a document that says I can't serve my client for 1 year from the day I resigned. My current employer used to provide services to a company that is based in US. And that they had a contract to provide services to the client for a year. The contract expired on Dec 31 2015 and the client hasn't renewed the contract. My client has shown interest to make me an employee of theirs. An employee of India branch and not US with which we had a contract. So my question is that can my current employer move legally against me if I accept the employment offer that has come from an Indian branch which was not our client at all ?

By  Esha Dhir  |  15 Apr 2016  |  Upvotes: 0  | 

2 Answer(s)

Rashi Gahlaut
Advocate

1) Under section 27 of indian contract act any agreement in restraint of trade is void

2) After your resignation is accepted you can accept the employment offer of the Us company indian branch 3)the constitution of India in article 19(1) (g) provides an individual to practice any profession, vocation or trade of his own choice. As a general rule, negative covenant restricting the employee beyond the period of employment are considered to be unreasonable but there are some exception to it. The exceptions include confidential information and non-solicitation agreements.

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Ravindra Purohit
Advocate

1. Since both the entity are different from each other there is no restriction for you to Join the Indian firm.

2. Moreover of the new employer is not the competitor of your previous employer nor you were entrusted with the secrets of the previous employer, sch restrictive bond of one year is not binding on you.

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