Autumn Jane
Workplace Happiness
Mksharma63
Operations, Hr And Marketing
+1 Other

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Hi All,
I want to know that, is joining a comptetors co or a client's company is illegal, because i have observed in my both previous company's offer letters that they have added the clause saying that employee should not join their competetors immidiately after quiting the job from their existing co. and also pls let me know that is it illegal to join client co of and how it is legal affect if an employee joins to his current co's client only!
Regards
Jayasheela

Hi Jayasheel,
Actually this kind of Clause is made to avoid leaking of valuable information to the competitors. I am working with a consultancy and I am also having same kind of Clause. As such this is not illegal .
This is made for the self interest of the company!!
Seniors plz comment

Hi Jaishi
Refer to your Employment Contract or Employee Handbook. For confidentiality, usually there's a policy that stipulate staff are not allowed to work for competitors and/or clients within a specific period of time. If such a policy is in placed, resigned staff should obliged to avoid getting into legal tussle.
Personally, whether such a policy is in placed or not, it is how the whole employer-employee relationship is that leads to the termination of service. I have seen many different practices:
1. Policy in placed. Staff resigned, gave 1 month notice and at the same time informed that she was joining a competitor. Her resignation was accepted with immediate effect. Company paid her salary-in-lieu and she need not serve the 1 month notice.
2. Same situation but staff was allowed to serve the 1 month notice because this particular staff is well-known to be a righteous and professional person.
Regards
Autumn Jane

A condiion that is accepted while joining in the organisation is equal to a condition of agreement. So it should be followed.
Even some offer letters meant for higher level managers states that none of his/her close relatives should do job for competitors or clients, without permission from the employers.
So, these are not illegal.

How can we avoid an employee joining competitors, if person is quiting the job and joining somewhere means in most of the cases the profile gets matchs perfectly with competitors only,if I am not wrong, we find many practical cases of senior level people shifting from one co to other in the same industry, in that case changing the job should get restricted only to different industry not withing the same industry,,
Regards
Jai

Such clauses like donot join competitors or there is a bond for 2 years else they will be penalty etc.etc. are illegal. Such unilateral clauses are void ab initio.
Yes if your job agreement or contract gives you any benefit in lieu of not joining competitors or not leaving before 2 years etc. than it may have a legal value. By definition any valid contract has to have an offer, an acceptance of offer and a consideration for acceptance.
So i beg to differ from opinion of Parsurampur- A condiion that is accepted while joining in the organisation is equal to a condition of agreement. So it should be followed.
Therefore if you have guts and any competitor who values your guts .............and wants to pay you handsome ............Join immediately

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