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krishna   01 June 2016

My previous oraganziation related to non-solicitation

Dear Respected lawyers,

We need your answers on my situation from my previous organization related to non-solicitation.

I Worked for company XXX ( at client place AAA) for 12 months, Due to my health conditions (which i have stated in my resignation letter is on 19th April 2016) I have Regained from my organization XXX on 19th April 2016. I have Requested to step down my duties immediately (because i was not well). But HR manager came back and told me on 24th April 16 that I have to submit Form 16 of my previous organization due to my back ground check was RED, if I failed to do in next 24 hrs will effect termination of employment as per the company Records. My Previous company not ready to provide that document and they are not reachable (they are in remote location). I went to XXX org for continuously for a week till 4th of May 16 to do the needful. HR manager is not ready to talk to me and provide info. Finally on 4th May 16 he told me that my service stands terminated as per the Email he sent on 24th April 16 and i am not going to provide any termination letter or Relieving letter from XXX Org as its their company policy.

After one week i got an opportunity to join other company YYY and joined on 13th May 16. That deployed me in same client location where i used to work before (i.e AAA). I have started reporting from 16t May 2016 to client location (AAA) from YYY org and working here. 

From my previous org XXX i got a Regd post on 29th May 16 it’s a termination letter. Letter as follows:

Dear ####,

Further to corresponded about submit ion of your documents pertaining to your previous org as on 26th April 16, You are unable to produce the documents within the specified time duration.

Further Your employment With XXX Org stands terminated effective from 27th April 16.

You will be covered under the exit policy which talks about non-solicitation, wherein for the period of 6 months from the date of separation of employment with XXX org the exited employee should directly or indirectly not seek or accept any form of engagement or employment from immediate customer that you had served during your employment with XXX org.

Failed to adhere to above policy shall be reported to customer organization.

HR Manager.

Stamp and signed by him.

Note: They have not informed this policy to any of the employee in XXX org by email or any other form of document (We are not aware of exit policy). 

This termination letter came after he came to know that i have joined to same client that i have served before in employment from other company YYY.

I spoke to my Client Org manager (AAA manager) and he told there is no such agreement in between my previous org XXX and client AAA. 

I have not signed any non solicitation document written from my previous organization.

In offer no where the clause non-solicitation included. 

What should I do now? I spoke already about this with my client AAA and he said my previous org XXX doesn't want to join any employee from them to client place AAA other Orgs that is the reason this clause included in termination letter.

Please suggest

 

Thanks in adv,

-Krishna



Learning

 14 Replies

Kumar Doab (FIN)     01 June 2016

Other thread by querist:

https://www.lawyersclubindia.com/forum/Experts-Ask-a-query-option-8577.asp

 

 

 

Kumar Doab (FIN)     01 June 2016

 

Form16 is to be supplied by the employer and failure can attarct penalty by IT authorities. Did you ask to supply in writing under proper acknowledgment?

Did you write correct salary drawn from previous employer while applying to XXX? What is the problem in Form16 issuance and why they are unable to supply it to you? Do you have all salary slips from previous employer?

Did the HR personnel supply copy of report showing ' back ground check was RED' and 'their company policy' and 'exit policy which taks about non-solicitation'?

Did you get email dated; '24th April 16 '?

Did you meet HR personnel on  '24th April 16 ' or '26th April 16'?

What is the date on termination letter? Do you have envelope in which termination letter was sent? Did you download tracking report from courier/India Post website?

Did you minute your meetings with HR personnel?

What was your designation and nature of duties in previous and XXX employer?

After termination has XXX supplied FnF statement, FnF dues, service certificate, relieving letter,form16, salary slip of last months and all months,PF a/c slips, ESIC card, NOC/NDC etc?

You should act to call back the termination order?

 

Kumar Doab (FIN)     01 June 2016

Repeated at;

 

https://www.lawyersclubindia.com/forum/details.asp?mod_id=137901&offset=0

 

krishna   02 June 2016

Thanks for the quick responce Kumar Doab.

Form16 is to be supplied by the employer and failure can attarct penalty by IT authorities. Did you ask to supply in writing under proper acknowledgment? 

<No we have not asked for it, we will be asking for sure>

Did you write correct salary drawn from previous employer while applying to XXX? 

<Yes: we have salary slips with correct salary>

What is the problem in Form16 issuance and why they are unable to supply it to you? Do you have all salary slips from previous employer?

<Yes i have all salary slips from previous employer>

Did the HR personnel supply copy of report showing ' back ground check was RED' and 'their company policy' and 'exit policy which taks about non-solicitation'?

<NO>

Did you get email dated; '24th April 16 '?

<Yes we have email >

Did you meet HR personnel on  '24th April 16 ' or '26th April 16'?

We met on 14th of April to CEO (it's a small org) and then sent resigation email on same day evng and then we met HR personal on 15th of April from there daily we use to meet him to get the confirmation (Note: Daily we use to sit for whole day to get his 10 min of time)

What is the date on termination letter? Do you have envelope in which termination letter was sent? Did you download tracking report from courier/India Post website?

No date is there on letter, lettor sent on 25th May and reached to us on 28th May 

Tracking report i have not downloaded.

Did you minute your meetings with HR personnel?

yah we have audio recordings.

What was your designation and nature of duties in previous and XXX employer?

Designation is junior level software engineeer, nature of work is software testing activites.

After termination has XXX supplied FnF statement, FnF dues, service certificate, relieving letter,form16, salary slip of last months and all months,PF a/c slips, ESIC card, NOC/NDC etc?

No FnF dues, Last month salary also they have not given.

I have cleared all my dues at cleint place and i have copy of it and i have submited my ID card in XXX org. No form 16 is given and also when i downloaded form 26AS from income tax website it shows that submition of tax done for January, Feb, March 2016 before that there are no records. Salary slip they generates in portal. They have done for May 16 but they have not credited my salary. 

 

You should act to call back the termination order?

Yes i would like to, My concern here is about current job. Below clause.

You will be covered under the exit policy which talks about non-solicitation, wherein for the period of 6 months from the date of separation of employment with XXX org the exited employee should directly or indirectly not seek or accept any form of engagement or employment from immediate customer that you had served during your employment with XXX org.

Failed to adhere to above policy shall be reported to customer organization.

Plase advise.

Kumar Doab (FIN)     02 June 2016

Claim that Mr/Ms...............made a statement ' ' back ground check was RED'  and demand copy of such report and/or statement in writing from  Mr/Ms........

Claim that you have all salary slips and have provided these to XXX.

You have posted that:

--'No date is there on letter, ". It is strange. Ask the sneder to send letter again with date.Claim that it was "sent on 25th May and reached to us on 28th May". Attach tracking report.

--'Did you minute your meetings with HR personnel?

yah we have audio recordings.'

Let your able counsel darft your narration/representations.

---'No FnF dues, Last month salary also they have not given.'

Demand to supply  FnF statement, FnF dues, service certificate, relieving letter,form16, salary slip of last months and all months,PF a/c slips, ESIC card, NOC/NDC etc by Redg. post so as  to reasch you in say next 3 days.

 

---"Yes i would like to, My concern here is about current job. Below clause.

You will be covered under the exit policy ".

 

It should have no adverse bearing on you.

 

---"Failed to adhere to above policy shall be reported to customer organization."

Have they done so?

 

 

krishna   02 June 2016

Claim that Mr/Ms...............made a statement ' ' back ground check was RED'  and demand copy of such report and/or statement in writing from  Mr/Ms........

Claim that you have all salary slips and have provided these to XXX.

<Sure i will be following up with this>

'No date is there on letter, ". It is strange. Ask the sneder to send letter again with date.Claim that it was "sent on 25th May and reached to us on 28th May". Attach tracking report.

<Ok i will be sending that too>

'Did you minute your meetings with HR personnel?

yah we have audio recordings.'

Let your able counsel darft your narration/representations.

<Yup, I will be drafting them>

"Failed to adhere to above policy shall be reported to customer organization."

Have they done so? 

<No Not Yet done, Looks like they are going to meet client manager something this week end>

Kumar Doab (FIN)     02 June 2016

You have posted that:

---"I spoke to my Client Org manager (AAA manager) and he told there is no such agreement in between my previous org XXX and client AAA. 

I have not signed any non solicitation document written from my previous organization."

"My concern here is about current job. Below clause.

You will be covered under the exit policy which talks about non-solicitation, wherein for the period of 6 months from the date of separation of employment with XXX org the exited employee should directly or indirectly not seek or accept any form of engagement or employment from immediate customer that you had served during your employment with XXX org.

Failed to adhere to above policy shall be reported to customer organization."

 

Both of these statements in red are contradictory.

 

In which document this Exit Policy is inserted by XXX? Say appointment letter?

If you have not signed any Non Solicitation Clause then how XXX claims that you have signed/accepted it?

 

 

---"Looks like they are going to meet client manager something this week end"

""I spoke to my Client Org manager (AAA manager) and he told there is no such agreement in between my previous org XXX and client AAA.'

Download the evidence of such meeting. Even if in writing from client Org Manager. OR submit your own minutes. Or record the conversation. 

Apparently yor client Org Manager may favor you, and may not ask you to resign.

If as a fallout of the meeting you loose your employment and if you can prove it then you may claim damages.

 

Non Solicitation and Non Compete are two different things.

Don't remain entangled with HR personnel.

Escalate to good offices of appointing authority,MD and make them  aparty.

Beyond this you should preferably engage an able counsel specialzing in labor-service matters and proceed under expert advise of your counsel and build irrefutable record to defend your interest.

 

 

 

 

 

 

krishna   02 June 2016

Yes, i have only signed on Appointment Letter where it doen't have any Non Solicitation Clause (I have a copy of appontment lettor signed by me), XXX Org saying that i will be covered under exit policy which includes Non Solicitation Clause. This is updated in in my termination letter which i have received after a month of my termination. I have already joined to other company YYY where deployed me to Same client location AAA where i worked before.

Kumar Doab (FIN)     02 June 2016

You have posted that:

 

---"XXX Org saying that i will be covered under exit policy which includes Non Solicitation Clause. This is updated in in my termination letter which i have received after a month of my termination.'

 

Is exit policy mentioned in appointment letter issued to you?

Do you have copy of all rules and policies mentioned in appointment letter?

Is it mentioned in appointment letter that your employment shall be governed by say service rules/HR policy etc that is modified from time to time and/or kept on website/HR portal etc?

 

---" I have already joined to other company YYY where deployed me to Same client location AAA where i worked before."

You are not employed by client AAA.

Your next employer YYY can  depute/locate/second/transfer you to any other place, in line with T&C of employment.

If YYY has located you at AAA, you are not at fault or should not be faulted with or penalized or accused.

Obrtain  a letter and email  from YYY asking to go and work at AAA.

All said and done::::

If as a fallout of the meeting you loose your employment and if you can prove it then you may claim damages.

 

Non Solicitation and Non Compete are two different things.

Don't remain entangled with HR personnel.

Escalate to good offices of appointing authority,MD and make them  aparty.

Beyond this you should preferably engage an able counsel specialzing in labor-service matters and proceed under expert advise of your counsel and build irrefutable record to defend your interest.

 

 

 

krishna   03 June 2016

Hi Kumar Doab,

Is exit policy mentioned in appointment letter issued to you? <Yes i have a copy of appointment letter, Exit Policy Not mentioned in Appointment Letter>

Do you have copy of all rules and policies mentioned in appointment letter?

Is it mentioned in appointment letter that your employment shall be governed by say service rules/HR policy etc that is modified from time to time and/or kept on website/HR portal etc?

 

We have seen that in our Employee separation exit policy. 

- HR triggers Exit checklist which the employee needs to fill-in and get clearances (i.e. NOC) from various departments/functions on the actual date of exit. This includes (a) settlement of advances, loans, dues, fines with Finance (b) return of company assets which were given to the employee for use (c) return of ID card, access permissions to IT/HR (d) completion of handover of work/assignment to substitute resource (e) Balance leave encashment application (if any) (f) settlement of all reports such as TER (g) weekly timesheet logging (h) Pending leaves record regularization if any (i) completion of performance assessment of self and all direct reportees if any. HR to get an exit NDA signed from the employee on his last working day which states about the Employee Non-Disclosure, Non-solicitation and No-Hire clauses pertaining to the employees next employer, for any clarification on the same employee can contact the HR before exit initialization.

as mentianed in above clause and also while my exit they just asked me to leave the organization. I have given my ID card next day morning as my HR sent email to submit ID card at office>

 

Obrtain  a letter and email  from YYY asking to go and work at AAA.

 

 

Thanks very much,

 

krishna   03 June 2016

thank you for the help

Kumar Doab (FIN)     03 June 2016

Did you sign Exit form?

Do you have its copy and all NOC etc as mentioned in Exit Form?

Is it mentioned on Exit Form that 'HR to get an exit NDA signed from the employee on his last working day which states about the Employee Non-Disclosure, Non-solicitation and No-Hire clauses pertaining to the employees next employer, for any clarification on the same employee can contact the HR before exit initialization.'?

 

The HR personnel apparently is pressing in order to justify his job and build some reputation for him by your case.

The establishment may not spare you easily.

Better engage an able counsel.

 

krishna   03 June 2016

Did you sign Exit form?

<No i have not signed any exit form becase he is not even presented it to me. I asked him on last day when i went to XXX org to submit my ID card about is there anything that i need to know or sign .. then he replaied to me as " NO ">

Do you have its copy and all NOC etc as mentioned in Exit Form?

<They have asked me to go and clear dues at client place (Where i have submited laptop and desk keys and cleard all dues from Client AAA org and got the signed form of it) I have given a copy of it to my parent company XXX of this dues clearance. Apart from that no signs on any forms and nothing>

 

Kumar Doab (FIN)     03 June 2016

You have posted that:

"I asked him on last day when i went to XXX org to submit my ID card about is there anything that i need to know or sign .. then he replaied to me as " NO "

 

"They have asked me to go and clear dues at client place (Where i have submited laptop and desk keys and cleard all dues from Client AAA org and got the signed form of it) I have given a copy of it to my parent company XXX of this dues clearance. "

 

Minute these under proper acknowledgment.

Record and minute all meetings with this HR personnel including with your current employer/client during which he is likely to remove you.

Escalate to good offices of appointing authority, MD and under proper acknowledgment.

Let your able counsel draft and structure everything.

Beyond this let your counsel specialzing in labor -service matters  handle everything and defend your interest.

 

 


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