If your client is in your competition business in any manner it will restrict you else not.
Restraint from joining a client
Hi, I have applied for a vacancy at my client organization. As per the terms of contract with my current employer "You shall not associate or cause yourself to be associated whether directly or indirectly, with any company or organization, dealing in, or providing, or engaged in services competing with those of the Company for a period of 6 months from the date of completion or premature termination of employment" Would this clause restrict me from joining the client or is it only from joining a competition? Also, I have rendered my resignation to my current employer and they have written to me saying that I cannot join the client place as per the terms of my contract as they are aware about the vacancies at the client place. Could you please advice
Asked 6 years ago in Labour
17 Answers
Dear Client
You can join any organisation after your resignation so you can join the company of client. Because any agreement in restraint of trade is void under section 27 of contract act.
And the agreement which restrain you from joining any company after resignation will be null and void.
Such clause not valid in India once you resign from the organization.
any agreement in restraint of trade is void under provisions of section 27 of contract act
2) you can after resignation join any other organisation
As mentioned clause is ultra vires of the constitution that is challengable, they can't compel for any illegal term so , join there and if they raise or raised any objection then challenge it.
if the client's business is competing with the business of your current employer, then the clause you have stated in your query will apply to you
These clause are not legally valid. You can join anywhere as per your wish provided you shall not share any trade secrets of your previous employer if any. The legal force of this condition vanishes with due passage of time say 2/3 years depending upon effects on your previous company of sharing of any trade secrets to its competitors
The clause is only for joining competition it has no condition of clients. If the clients company is not in same business then you can join.
This clause only restricts you from joining a competitor.
As long as this client organization is not a competitor to your current company, you are free to join it.
first discuss with your appointing authority before joining the client company and settle amicably because such agreement usually bind you because in some companies they will train the employee about their company skills and expertise and they say that you may disclose the trade secrets and will benefit the client in one or the orther way so to avoid such practice they harass the employee who leaves the organisation and joins in client
and this would be you mental tension if the previous company harass you mentally
so disclose clearly with the appointing authority after confirmation from you client organisation and if the appointing authority does not relive you discuss with the client organisation and disclose the facts to them and join.
To be enforceable, restraint of trade clauses must be reasonable. ... While there is no hard and fast rule, a reasonable restraint period (for non-solicitation) is often considered to be between three and 12 months after termination, subject to industry-specific and individual considerations.
It will generally be contrary to the public interest to enforce an unreasonable restriction on a person's freedom to trade. However, where the proprietary interest of the company which needs protection outweighs the employee's interest in continuing his trade, such a restraint will be reasonable and enforceable.
f your employer says you can't work for a competitor. When you leave a job some employers will say you can't work for a similar business for a certain amount of time. ... Your contract might restrict what work you can do next, but your employer can only do this if it's needed to protect their business.
Post termination restrictions are often found in employment contracts to seek to protect the employer if and when that employee leaves. A well known type is a non-compete clause.
Hi, Thank you for the response. Even my understanding of the clause is that it restricts from joining a competition and not a client. The client organisation does not deal in the same services as my employer. Also, to add further to my question the contract between my employer organisation and client organisation has a clause on Conflict of Interest which states "Prior relationship: When the individual has a direct or indirect Independent commercial engagement with a vendor or service provider in the past, which is now to be engaged by or on behalf of the 'client organisation', its Member, or the Franchisee Illustration 1: A is President of the client. Prior to his taking office, he has been engaged professionally for his services by a firm B. After A becomes President, B is appointed as the official consultants of the client. A is hit by Conflict of Interest" Would this clause restrict me from joining the client. Also, the contract with the client organisation is expired and is yet to be renewed. So would any of these clauses stand true. The reason I am asking is I have been offered a good opportunity in this client organisation and my current employer has written to me over an email that I cannot join the client as per the terms of my employment contract. I would prefer to resolve this amicably and leave on a good note. However, I dont see much support from the management of my employer organisation. Hence, I need legal advice on whether me joining the client would breach any law and if the employer organisation can take legal action against me? Thank you for your response
Asked 6 years ago
any agreement in restraint of trade is void
2) you are free to join the client
You can freely join the new company. You will not go behind the bar.
If your restriction clause with the previous employer restricts you from joining with this client organisation then it may be a problem for you if still adamantly join them, your explanation to whatever reason you may justify may not be heard by them, if they sue you then you may have to unnecessarily run between court and home taking care of the litigation, your new employer may not come to your rescue stating it to be your personal affair, hence take a cautious step in this regard.
The clause is between the organisations it does not affect you, you can join based on this clause no action can be taken against.you.
No it cannot restrict you from joining the company.
No you can join the client with respect to the policies of your earlier job