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Dear Senior Members,

I work for a small IT firm in Hyderabad (India). Out of total 44 resources of the company, our team of 13 resources work on development, testing and support of a outsourced project of a German IT company.

We feel happy to work on the projects of this client, all because of our interest in the projects and good professional relations with client. But now none of our team member is happy with the facilities, benefits, salary and appraisals given by company and everyone is now willing to switch the job asap.

No doubt, with our good experience in IT, we all can get good jobs in industry with good hike. When client came to know about our unhappiness with current employer, client came up with the proposal of forming its own new branch in Hyderabad and employ team resources in it with good hike in salaries and facilities.

Team is interested in this offer and willing to resign and join client's new branch asap. But before we proceed towards this option, we would like to receive your expert advice, mainly from legal aspects.

Below is additional useful information for your reference:

1. In the agreement between Client company and our company, there is no clause added which resists client to employ employees from our company.

2. We do not have any kind of bond with current employer but as usual we have signed 'Appointment letter' and 'Employment book' after joining current company.

3.We have checked both letters and found a clause which is related to after employment condition. The clause is given below:


"After termination of your employment with our company for whatsoever reason, you shall not not take employment or associate yourself with any organization involved directly or indirectly with software development and/or marketing of products/systems similar to ours, in any part of India, for a minimum period of one year following your last day with our company."

"It shall be clearly noted that above clause is a condition precedent to employment in our company, in the view that information gathered by employees of the company during their tenure with us can be used to our detriment by our competitors."


In our opinion, we are not violating this clause, as it does not state that we should not work with Client companies; also there are no similarities in the products of Client & our company.

Question 1: In your expert view, are we violating this clause?

Question 2: Can our current employer sue us or client in any way, if we properly resign and serve complete notice period in professional way?

Question 3: We are keeping things deep secrete and do not discuss, chat, mail about in it in office environment to avoid keeping any traces behind. But in case somehow, if our employer comes to know about the plan, what action can be taken against us?

Question 4: How much risk is involved in all this and what additional care we should take to avoid any unwanted circumstances?

I hope I have clear the scenario. If not please feel free to ask me for more details on this matter.

Your expert feedback is very much valuable to all of us (including client) without which we wont be able to proceed further.

Hoping for early response.

Thanks a lot for your advice and time in advance.

From India, Bangalore
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From India, Mumbai
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