Anil.2305
Implementation Consultant.
Ruchi 5
Manager
+3 Others

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Hi,
Please advice if my F&F will be cleared by my company or no? I work for a fortune 500 recruitment firm and at the time of joining they had made us sign a contract stating that once we terminate our employment with them, we cannot join competition or any of the client of the company.I will be joining the client, hence wanted to know if the company has authority to stop my Full & Final Settlement as i have my Gratuity/PF and salary all pending...
Worried! Pls reply ..Thanks

From India, Mohali
Hi
As specified by you , if the company terminates , you are not supposed to join the client company.. Here you are resigning voluntarily and hence there is no need to worry......
Although ,ensure whether your gratuity amount is paid along with F&F or not. Because,some companies pay the Gratuity amount along with F&F and some do not . They pay separately .Hence, asked to ensure
Keep it confidential til you get your F&F ( old company) and a month Salary from the new company .Or you can extend confidentiality till you get the Gratuity amount if not paid along with F&F.
The old company ( resigned one /serving notice period) will be issuing the PF form post 45 days of your relieving date. That you have to submit to the PF office.
Thanks
Anil.N

From India, Bangalore
Hi Anil,

Thanks you for your response.Termination according to the company is either they terminating the employee or the employee resigning on his own. The clause says tht we cannot join competition or client, hence my worry is that the day i join the new company, these guys will know even before my F & F is clered.Gratuity here is paid in F & F.

The confidentiality agreemnt is signed on the company 's letterhead but is not vetted or attested or on stamp paper, so is it a real valid document that the company can stop F&F?

As specified by you , if the company terminates , you are not supposed to join the client company.. Here you are resigning voluntarily and hence there is no need to worry......

Although ,ensure whether your gratuity amount is paid along with F&F or not. Because,some companies pay the Gratuity amount along with F&F and some do not . They pay separately .Hence, asked to ensure

Keep it confidential til you get your F&F ( old company) and a month Salary from the new company .Or you can extend confidentiality till you get the Gratuity amount if not paid along with F&F.

The old company ( resigned one /serving notice period) will be issuing the PF form post 45 days of your relieving date. That you have to submit to the PF office.

Thanks

Anil.N[/QUOTE]

From India, Mohali
Anonymous
Hi Ruchi, first for your question for F&F settlement it will happen only if your current company doesn't know that you have joined their client because your current company is going to very unhappy by your behavior of joining their client or competitor.

Couple of points for your knowledge.

1.) In India the rules are very clear that contracts or bonds of any type even if it is done on stamp paper is not valid. (only regards to employment type agreements for exp: two years bond, should not join client etc) but you are liable for the damages caused by you leaving or any expenses that company has invested in your training programs etc and if you have no dues left they you are free to walk away from them any time with respected notice period served. and there are cases even the notice period cant hold an employee who wants to leave the company.

2.) Recruitment is a vast field and any company who does recruitment is a competitor to other, im not sure how many years you have exp lets say you have 3yrs for exp, what you will do, quit recruitment and start over in different job. its not possible practically so you can join any other companies who does similar business for the same.

3.) As i told you before contracts of any type pertaining to employment will not hold in India and if some one tries to trap you with it, it is illegal in India

4.) In case you get trapped by your company you can always file a case against you company in labor court and get it done but yes its a lengthy time consuming process but don't worry you will be favored

According to Indian law any one who is directly involved in the strategy making of company or who is the vital part of the companies over all function or who is the key source of business operation if he joins the competitor because of which the company may incur loss or advantage in business is only restricted to join the client or competitor to agreed period of time only

Suggestion for you:

1.) Talk to your client where you are going to join abt the clause that you offer letter says that you cannot join the client and if your client says that they have no such clause signed by them with your company then relax and join them. if your client is skeptical abt it i would recommend that you should find a different opportunity because any time they can withdraw the offer and you would end up jobless. i have seen many cases in my career that people have joined the client place and the company was not able to do anything abt it ( even i work in recruitment firm)

2.) Kindly keep the clients details where you are planning to join confidential til your f&f settlement so that you will get all the papers and settlements without any problem, then if you wish reveal it to them and they cant to anything to you, and don't worry even if they threaten to take you to court tel them you will happily face them in court and keep a good number in your mind to get a compensation from them for bringing you to court and harassing you :)

Hope i have given enough details and plz feel free to reach me for more info if you need and also plz check the other threads on the same topic so many people have posted the same query, All the best,

By

Sarathy

From India, Gurgaon
Anonymous
what ever the reasons may be even if an employee is being terminated the full and final settlements have to happen so dont worry your company is liable to do the settlements. also the company can deduct any dues from your end as well hope this helps
From India, Gurgaon
When earlier Company has made it clear, in writing, that after leaving the job, employee cannot join its Competitor or Client, how far is it justified that such employee breaks this commitment (whether legally or morally ). I personally do not support Ruchi. Ofcourse, her F&F will be certainly done, as per rules. It cannot be withheld.
From India, Mumbai
Anonymous
@ Abhaybandekar ::: You have to understand that any company who involves in recruitment will be considered as competitor and every consulting company works almost for all the clients with their respective field, so kindly tel me what should ruchi do resign from current company and sit at home doing nothing, how would you justify that legally or morally. Indian law clearly says as far as you are not the key strategy player in your company you can join any company and no one can or should stop you for the same and even for the key strategic player of the company he cannot join the competitor or client company only till the mutually agreed duration by both the parties. Its really illegal to trap a person by saying that you should not join the competitor or client Just because a person joins your company and performs. and its not my personal opinion thats Indian Law. sorry if have offended you by any ways.
From India, Gurgaon
Dear Mr Sarathy,

Anyone will be fully satisfied with your detailed comments, which also have great clarity, and so do I. However, I still have argument :

1. When a Company has made Ruchi signed a Contract that she cannot join Competitor or Client (which she must have signed willingly at the time of acceptance of job), it may not be just a routine formality.

2. Every company has some secrets or sensitive issues, which they may be wanting to protect, as far as possible, and that is why this clause may be forced on employee at the time of joining. At the same time, if employee breaks the contract, the company will certainly have some tacties, which again may fit into law, whereby they can harass the person, even at his new place of work.

3. In the present case, when Ruchi is joining a Client, (for the present employer, Client is more dangerous than competitor), her present employer will certainly be worried. It is a known fact that legally nobody can stop her joining a Client, but she has always to carry a tension, atleast at the initial few months, that her employer may try to put pressure on her that she has done something wrong.

4. Legally Ruchi may be 100 percent Safe, but morallyNo, something will be pinching her.

Would be happy to listen some hard words, from your end.

From India, Mumbai
Dear Abhaybandekar,

Hopefully i have not offended you in the first place and for your questions kindly find my thoughts,

1.) what ever we sign in the papers during the employment are always one sided and you should be knowing much better than me on this, hence we normally end up like kind of take it or leave it, which and when we start career nobody gives much thought to it or they are not clear. which being said that yes it kind of morally wrong for someone to sign and to break it. i agree to this point. but then again in business world there is a common saying... ( Its just business nothing personal) :)

2.) Again i agree to this point as well which is highly valid, but in consulting firm the only reason this is done is to just stop them from going to any of their competitors or clients simply because they will get a good and trained employee and the employer will loose their business and again its one sided where in the the employee's career is never considered, practically anyone will join an organisation if it gives a better salary, satisfaction and growth, if only the current employer can give that why would some one will go out. Again in consulting environment the attrition rate will be much much much hire and even from the employer side it will be hire and fire. see one thing clearly you have to understand abt consulting is that the performers of the company will always have problem in leaving the company and finding a better opportunity because of the so called clauses with the current employer, but in the other hand the non performers will never have a problem either in leaving the company or finding any other company for that matter, what i said may be contradictory or even funny but thats the reality of the consulting business coming back to your point the recruiters will never hold any key sensitive datas of the company only they know is what client and what requirements and what candidates. so its not a problem for any recruiter to go and join any where.

3.) yes she will be tensed all along because of the current employers activities and that to will go eventually so no problem on the same.

\4.) As i said before Its just business and nothing personal, she doesnt wants to continue there and some one gave her a good opportunity by valuing her abilities and skills which her current employer fail to do so. and trust me she will feel far better and gud after leaving the consulting environment.

over all if the person have to feel guilty abt their activities by being emotional ya they may feel wrong, but in this business minded environment everything is fair and right.

Thanks for putting forth some healthy questions.

From India, Gurgaon
Hi All,

My problem is somehow not exctly the same but I am putting it here.Hi Sir,

There are few clarification needed.I was working in a company directly dealing with clients.One of the clients suggested my name to their peer company and have given me a good offer.I have accepted the offer and resigned.The company which I was working in was not paying me on time.I did not receive my last 6 month variable.So I said that you can deduct the amount as I am not serving the notice period.But they threatened that they will file a FIR and do legal action under non solicit.The company who gave me offer did not have any direct contract or agreement with my previous company.How can they say something like this?Is this legal?

They have not given me relieving letter,experience letter.and they asked me to pay 45 days of salary for getting same.Also I was never officially confirmed as permanent employee after probation but they asked me 2 month of salary to leave instead of one.No mention of settlement with variable.Never they paid the reimbursement even though it was mentioned in offer letter.They are asking that I can not join a client,when the company did not have any formal agreement with them?

What should I do?I replied that I can not pay them.The company is ready to take me without relieving letter?Can they take any legal action?

From India, Bengaluru
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