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Arastu (software engineer)     09 July 2014

Got legal notice from previous employer

Hi All,
I was working for a software company and resigned from there 2 months back. After that I joined the client company of my previous company. I got the legal notice from my previous company for joining client company. My previous company made me sign a contract for not joining any client company for the period of 1 year. I had no other choice other than signing that contract as they would have fired me. That legal notice says I have to resign from the current company, otherwise they will drag me to the court.
I already consulted a lawyer and he is telling me to resign will be a better option. But resigning is very difficult for me at this point of time. 

Please help me in this situation, as I am not sure what to do next.

Thanks




Learning

 6 Replies


(Guest)

When you signed that contract for whatever reasons maybe, you have made a legal binding and that contract is a legal agreement. Breaching the contract anyway would amount to dispute in court. There must be some clause about resigning which you did not follow. Usually a month or two notice option, or compensation by the employee while resigning before the contract period ends kind of clauses are there. Better get in touch with HR and Legal head in your previous company to mediate. If it do not work out then you have to resign from current company. I understand sometimes decisions maybe tough to take but you have done an illegal thing and now you have to compensate it. Your lawyer has given you correct advice as well.

Arastu (software engineer)     09 July 2014

I am not sure, about what to decide.As few people are saying, there is no contract, that can stop someone from getting a job in indian democracy. But few people are saying quit the job. I am completely confused. 

Arastu (software engineer)     09 July 2014

and just to make it clear, in the agreement they company did not mention about any money or compensation.


(Guest)

well there should be a clause for sure that if you leave before the period of contract over then you have to pay some amount of compensation for breaching the contract with the company. If not then you have to leave current job for sure. A contract is a contract whether in India, US or anywhere. You violate it, you pay the price. And indian democracy doesn't stops you from getting a job when you are not under a binding of any contract. 

Mohammed Ameenuddin (Sr. Legal Manager)     17 February 2015

There must be a clause of non solicitation of your previous company that you agree not to offer any employment with your company's client directly/indirectly during the term and one year thereafter, if there is no such clause mentioned in the contract. client, if it is not in the contract, then they cannot hold you or restrict you from working with end client. 

Kumar Doab (FIN)     17 February 2015

 

You have posted that:

 

----“ I got the legal notice from my previous company for joining client company.”

 

Apparently……..the company has cited or flaunted Non-Compete clause/agreement.

 

----“As few people are saying, there is no contract, that can stop someone from getting a job in indian democracy. “

 

Such people are right.

Others are wrong.

Visit a Labor Law Consultant/Service Matters Lawyer/Law firm specializing in such matters with all docs on record (whatever you have) e.g. Job advt,job application,interview call letter, selection letter, offer letter,appointment letter, HR policy/service rules and regulations etc. cited in appointment letter, any other agreement signed by you, list of clients mentioned in appointment letter/corrigendum/agreement/any communication,copy of resignation, acceptance of resiognation,service certificate,relieving letter,FnF statement,Form16,salary slips of all months,PF a/c slips,ESIC card,NOC/NDC etc……..legal notice and give inputs in person and proceed under expert advise of your counsel.

The Indian Courts of law have consistently been declining to enforce such clause/covenants/agreements as these hit the fundamental right to earn livelihood, and clauses of Indian Contract Act…………..

 

----“I already consulted a lawyer and he is telling me to resign will be a better option. But resigning is very difficult for me at this point of time. “

Change your lawyer. Is he/she a Labor Law Consultant/Service Matters Lawyer?

 

Find a Labor Law Consultant/Service Matters Lawyer/Law firm……….worth its salt……………… specializing in such matters.

Labor Law/service matters is altogether different field of law and in each city there a few lawyers/consultants specializing in such field and they are well known and usually all such cases are referred to them.

Your elders in the family/well wishers/colleagues/employee’s union-Trade Union leaders etc……can guide you to a competent counsel.

 

----“ That legal notice says I have to resign from the current company, otherwise they will drag me to the court.

Demand of resignation can be termed offence. The statements posted by you hints to coercion,intimidation,threat,pressure etc………………..and your lawyer should be able to handle it.

 

There are unlimited number of threads and judgments posted at LCI on similar queries.

You can conduct search at:

https://www.lawyersclubindia.com/forum/default.asp#.VOMVfYKqqko

(on right side of the page punch key words in button/space ‘Search Topics & Posts’ and press ‘Go’.)

 

You should become member of Employee’s unions existing in your trade /Trade Unions e.g. CITU/AITUC/INTUC/BMS etc …………………and trade Unions can also represent you……………….and its leaders know precise ways to drill sense into the heads………….

Employees that are ill informed and not united are like sitting ducks....................vulnerable to exploitation ..................and are exploited. 


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