Hi,
First, let me thank to all contributeros who made this forum a really worthy place.
I am looking for some advice on the employment contract and non-compete clause. I hope someone here can shed some light. Thanks in advance….
I am employed with an Indian IT company for the last 7 years. As part of my project I was asked to go to overseas for a period of 6-12 months (verbal only. No definite period in transfer letter) and work at client’s location. As of now I served the Indian company's overseas client for 5 years. My residency status changed in between and decided to live in new country as my wife started her part-time job and kid's schooling here. It is a tough decision to return to India leaving everything behind now.
As I felt that I have served the company for a good amount of time and try my luck in overseas market, I decided to quit the Indian company. While searching for the job, I came to know that the client had some job openings and got selected as well, but with around 15% less salary (client is not trying to poach me offering me a better salary). As a good gesture, I informed the Indian company that I am joining the client - NOT immediately but with a cooling-off period of 3 months. Now the issues started. They started threating me with suing etc if I join client in 12 months period. I had a look at the offer letter and Master Service Agreements and found some dodgy clauses. It is here I kindly request your help. I have tried my level best to resolve this amicably and part with the Indian company in good terms, but without much luck.
1. The offer letter doesn’t detail any of such non-compete clauses in that but a reference to that. It says “While joining you will have to sign Non-disclosure & Non-compete clauses". Please note that the details/conditions of the non-compete is NOT given anywhere in the offer / employment letter.
2. After accepting the offer letter and at the day of joining, the Indian company had asked me to sign a joining report that has multiple things in that like my Date of Birth confirmation, my immediate contact details for emergency etc. In that they had added a clause "This is to state that I have read the *enclosed* non-compete agreement and acceptable to me". Please note that the details of the non-compete is not part of that document but just a reference to it (through the word 'enclosed'). I don’t think there is any document that was given to me that outlines the clause details and I initialed/signed it. Also, this joining report is a document that is signed by me only and it’s not signed by the Indian company. (i.e. both parties have not signed, but the employment/offer letter is). If both the parties are NOT signing it, will it be an acceptable document. This is the document the Indian company is showing to me and threatening.
** All these documents are signed in India ***
I just want to know if this Joining report is actually a legal document, and as such the reference to the non-compete (without details on the same page or I initialing/signing the attached page what they say) is a valid one? Also, what’s the legal validity of such a clause - Is it applicable only in India or will it be applicable to overseas as well?
In the worst case, if I decided to go ahead and join the new company, what will be the implication? I tried all the possible options but the Indian company is still insisting.
Thanks for reading this and providing the advice. Greatly appreciated.
Sam
