Recruitment/talent Acquisition, Career Counselling

I was recruited by an HR firm on their payroll to work for a client at the client's workplace as a contractor. At the time of joining, the offer letter did not mention a non-compete agreement. But, after one year of work, I am being informed through mail that a new non-compete agreement will come into effect. The non-compete agreement states that " I cannot work for the client with I am presently working now for one and half years after my termination". Can I refuse to accept this new clause? Also, the client for which I am working as a contractor is an IT company, and my parent company is a HR firm. So, they are not competitors, yet, I am being told that I cannot work for the client company after my termination. Can a company introduce such a discriminatory clause in the agreement after one year of my work. The original agreement had mentioned that " The terms and conditions above are subject to company policy." But, in this case, a new condition has been introduced. Am I legally resp
From India
Hello thivij,
The NDA & NCA Agreements are pretty standard now-a-days in most Companies--IT & Non-IT, given the global/work environment we live in. Just as employees expect a clear-cut Appointment Letter where their interests are clearly mentioned & well-protected, so too would any Employer--thru the means of such Agreements.

First & foremost, pl look into the veracity & fairness of the request. Maybe, this HR company was asked by the IT company[client] where you work to have such an Agreement to be put into practice ONLY NOW? And the HR company too was trying to protect their interest, IN THE PROCESS?

Next, pl understand that there is a MORE-THAN-HIGH chance that you will have to sign such an Agreement with the next Company [IF you change your job to a new one] on Day-1 itself. So it's upto you to decide whether you are better-off here or with another company, where too you MAY need to sign such Agreement(s).

Coming to your contention that your Employer & the place where you work ARE NOT competitors, pl realize that the HR company wouldn't have hired you at all, if it were not for this IT company's contract/assignment they have got, which they are executing thru you. So, they are only trying to protect their interest. And also, you would have noticed that there is no bar on your working in any other company--even if they are the clients of this HR Company [at least it's usually that way with such Agreements].

Also, reg you query of legality of the issue, I don't think it's a LEGALITY ISSUE at all. It's entirely upto you whether to sign or not. You know the consequences if you don't want to.

All the Best.


From India, Hyderabad
Yes, your company can do that only if you are going to do the same nature of Work with client compny if you leave the current organization.
If the nature of work is different then your company can not stop you to do the same. ------>>
As per Article 19 ( g) of Indian Constitution & Section 27 of Indian Contract Act.

From India, Pune
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