If company has already fired to all of the employees and in past they have not signed a NDA & competent contract from your then you can join this contractor company.
Legal advice
Sir/Madam, I was working for a subsidiary company of company A. The subsidiary company of Company A has terminated all employees as it does not want to proceed with the project for which all us were appointed. Company A wants me join them for reduced emoluments ( almost Rs. 1 lac / moth difference ) and at a level one grade lower than I was holding in the subsidiary company( from E7 to E6). Now a contractor of Company A wants me join them for a better offer in terms of salary and position. Will there be any legal issue if I join the contractor of company A, as i was involved in the project ,as an employee of subsidiary company. Will be there any conflict of interest in this situation? Am I legally free from any objection from Company A? Please advise. Regards
Asked 4 years ago in Labour
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22 Answers
1. If you have not executed a non-compete agreement with the subsidiary of Company "A", there is nothing wrong in accepting the offer of the Contractor of Company "A".
2. As per your narration you are an independent person and you can't be compelled to do or not to do certain things as long as the work is legal.
You are at liberty to join contractor after being terminated by subsidiary company
any agreement in restraint of trade is void
you have not mentioned whether you have signed any non compete agreement and the clauses in said agreement
No conflict. You are free to join client/competitor of both subsidiary company and company A. Law of India dose not restrained from exercising a lawful profession, trade or business of any kind
In case you have signed NDA agreement between you and subsidiary of A or with A then you are liable for the non-compliance of the agreement otherwise NO.
I have not signed a NDA either with A or subsidiary of A. Since my potential employer is a contractor of A and more importantly I was involved in the particular project of A where the contractor wants me be posted, conflict of interest may come up or not?
Asked 4 years ago
No,untill specifically barred in writing expressly entered into an agreement or letter of appointment.
You are free to join it subject to above mentioned conditions.
Project is same but the employer is different from your earlier one.
You have handled project with the subsidiary of A or with A on same
Even if NDA was signed, you are free to join.
1. The question of conflict of interest does not arise here.
2. You were terminated from the Subsidiary.
3. You are free to join any Company you wish to.
Initially, wont work on the same project after 6 month can be worked on it.
As you worked in a same project you cannot join in other company for the same project.
Conflict of interest will definitely come. But it should be ensured that since you have not executed a Non-compete or Non-disclosure agreement with your previous employer, you are free to take up the new assignment.
If they terminated you and you have no grievance against them then join immediately where you are getting better emoluments , no harm in this.
you have not signed any NDA
you are at liberty to join the contractor
Dear Sir,
Since there is no legal obligation due to you may not work with the contractor, you will have no issues if you join with the contractor.
- Since, the said subsidiary company has already terminated you from the services , hence there is no contract /agreement left between you and the said company.
- Further, the employment bond with the negative covenant is valid and legally enforceable, if the parties agree with their free consent i.e. without force, coercion, undue influence, misrepresentation and mistake, but it is not enforceable, if it is either one sided, unconscionable or unreasonable.
- Further, section 27 of the Indian Contract Act prohibits any agreement in restraint of trade and profession.
- Hence, you are at liberty to move your career as per you wish , and that company cannot create any problem for the same.
1. In the instant case, you have not resigned and joined that Contractor.
2. Your services has been terminated and thereafter you have joined the Contractor.
3. You have the right to earn your livelihood by working with any party including the Contractor.
If you haven't signed then it will not be binding on you.
1. No there will be no legal issue in joining contractor of company A if you are getting better offer from them.
2. No there is no conflict of interest in this case because everyone is free to choose the way of earning.
T all depends upon the agreement signed between you and the subsidiary company. Kindly go through the agreement signed when you joined the company.
There should be no problem at all if they haven't stated this situation.
Conflict of interest may exist but unless you are bound by an agreement they cannot do anything.
First of all allow your company to terminate your employment hence you do not resign the employment on your own.
Once you are terminated then you have all the rights to join whichever company you would like to join as per your choice.
You are an employee of the contractor, hence any such conflict of interest shall be the liability of the contractor and not yours.
Therefore you can proceed as per your own decision.