Legal Question in Employment Law in India

I was working in a web development pvt ltd company . recently relieved. during my employment in company I was working for a client, when he came to I am leaving company for personal reasons he approached me to work for him directly. Company is suspicious about it and is planning to send me legal notice and also threatening me to drag me to court if I didn't do something to compensate the loss in business they will face after losing their client.

I am not sure if its legal for me to work for my client directly, company has also hold my employment papers and last month salary.


Asked on 12/19/15, 10:53 pm

2 Answers from Attorneys

Fca Prashant Chavan Expert Edge LLP

20.12.2015

Dear Sir / Madam,

You should live in the current present moment and stop worrying about "iffs" and "butts". Since you have already been relieved from your employment with the Company, it is none of your ex-company's business whether you do or do not work directly or indirectly with any of their client company(ies) simply because the nature of work may differ significantly. I mean the new Company may have assigned you an entirely different role from the one you were assigned in your previous Company i.e it could be that you may be working in the Vendor Department in the previous Company whereas you may be assigned the HR function in your new Company. In my opinion, it is perfectly legal for you to work for the new Company. You may send an application to your ex-company to hand over any original Certificates or documents they may have retained from you and to pay up and settle your F&F (full and final dues settlement).

Regards,

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Answered on 12/20/15, 12:59 am
Vivek Mapara Vivek N. Mapara

There are two aspects involved here

(1) You being bound by Non-Disclosure Agreement ; and (2) An Agreement in Restrain of Trade

Subject to agreement you have executed with the Company, you cannot solicit, directly or indirectly, with any of the Clients or Customer of the Company. At the same time, u/s 27 of the Contract Act, no agreement can restrain you from accepting the employment even if it from a Competing Company.

So you can can continue to work for the Client, however, do not disclose the confidential information of your ex-company and do not directly solicit to other client of your ex-company, with whom you came in contact during the course of your employment.

Feel free to contact should you have any questions

Vivek N Mapara

vnmlaws.com

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Answered on 12/23/15, 5:48 am


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