Query regarding Non-compete agreement
I work in a reputed Indian IT company. For last 2 years, I am on a deputation in Switzerland for a client based in Swiss.
I have a following query regarding the 'Not to Compete' covenant signed with my current employer at the time of joining.The agreement mentions the following clause, applicable for 1 year post the date of resigning from the employer (say Company A):
"(b) I will not (1) seek or obtain employment of any kind by any means, directly or indirectly, as either employee, agent or consultant, with any customer of Company A for which I am providing services on behalf of Company A that are competitive with the products and services available to the client from Company A, provided however, that this restriction shall apply only to employment to perform the same or substantially similar services that I am performing for the client as a Company A employee; This restriction applies to my acceptance of any employment by a customer through general advertising or third party recruitment; "
1. I may join an employer and work as consultant for same client, provided that the new employer is not a competitor of Company A, and not selling products/services that are competitve to those provided by Company A to the same client
OR
2. The service that I will perform for the same client in my new role on behalf of the new employer should not be the same as the service provided by me currently as part of Company A.
For example, if currently I am representing Company A as an IT Support lead, whereas my future role , as part of another employer is that of a Business /Functional Analyst, where the service/skillset is different , not competing with Company A's current service , is that a valid case ?
Request you to confirm if my interpretation is correct. My current company is raising an objection and threatening to provide roadblock.
Can they enforce the 'liquidation damages' , which according to agreement is my 1 year's salary (In Swiss Franc, that is a huge sum)? Can they legally sue me ?
P.S. I am planning to switch the employer, but work with the same client, on a different role. The new employer is based in Switzerland.
Thanks in advance for your feedback
Asked 8 years ago in Labour
Mr Ashish.Thanks for your reply. However the clause clearly states following.. however, that this restriction shall apply only to employment to perform the same or substantially similar services that I am performing for the client as a Company A employee. If I join another employer and work for same client but not in the same role and not providing same services competing that of Company A, how can it lead to breach of contract? the SOW for both the roles are different.
Asked 8 years ago
Dear All, thanks for your reply.
My current company has come back with a reply to my clarification as follows:
The new role you are going to perform is a regular business analyst role which can be performed by any associate of our company. Hence this is a clear breach of contract." Joining another company and working for same customer to perform any role in a SOFTWARE DEVELOPMENT LIFECYCLE, will be a breach of contract.
As per your replies, this seems to me a very vague reply by them. Can you suggest what can be done here?
Asked 8 years ago
Continuing my case further, the current situation is : I have resigned from my current company and serving the notice period.
But the manager of my current company is now forcing and threatening the new employer to withdraw my contract and stop any discussions with me.
He has also hinted to the new employer that if he doesn't cancel my offer, it may impact existing and new business contracts between my current and new company.
He is claiming that the new employer cannot hire me and make me work for same client without the consent of him. Though there is no contract or agreement between two companies that one cannot hire employees of another company.
I have raised this to HR and legal team in my current company highlighting the unethical and unprofessional act of my manager.
But can you advise, what steps I can do now before it gets too late ?
Asked 8 years ago