Facing Legal Trouble for Joining a Client Company: How Can I Defend Myself Against My Former Employer's Claims?

Hi all, I worked for an Indian employer for over 4 years. I joined as a trainee and was later confirmed. In my last project, I worked as a contractor for another client company. Eventually, I received an offer from this client company and joined them. The client company is a larger MNC and currently has some ongoing projects contracted to my previous company.

After nearly 1.5 years of leaving, my previous employer sent a legal notice citing clauses in the "employment terms and conditions contract." They claim I breached the contract by joining their client within 12 months and intend to file a civil and criminal case to recover the loss of business and legal fees.

Additionally, they made a batch of trainees, including me, sign the contract/agreement during confirmation without providing us a copy. Unknowingly, I signed it without reviewing the entire document, as we were pressured to submit a signed copy immediately. I also faced significant harassment from my manager during my last two years with the employer. Despite receiving multiple appreciations, I was given a low performance rating. He consistently found faults in my work, creating a hostile environment, which forced me to leave. It was around this time that I received an offer from the client and joined them immediately.

What Are My Options?

What are my options here to defend myself? What can the employer demand from me? How do I counter this situation?

Ideas? Anyone?? Please help!!

You just mentioned, "......sent a legal notice stating some clause......" Can you mention exactly/clearly what that clause is? That will be crucial for anyone in this forum to suggest anything meaningfully and realistically.

In general, most companies have a clause that an employee doesn't join a competitor within a specified period of time. In this case, you say it's your ex-client [now Employer].

Also, did you share this information with the HR of the present company? They might be able to do something since your ex-employer gets orders from here. Your problems with your ex-manager won't cut much ice at this stage and in the present circumstances, so please desist from mentioning it to anyone. Just stick to the point.

Regards,
TS

The clause that you are pointing towards is very important. If the said clause of not joining the client for the period of 12 months is mentioned in your appointment letter, then it can create hassles for you as it amounts to a breach of contract. Please read the clause in the letter and see what conditions are mentioned there; only then can we find a solution.

Somehow, it is strange that the company has been sleeping over it for the past 1.5 years, and it looks more like something else than a genuine breach of contract case. Also, please ensure if all the trainees were not given a copy of the agreement you all signed, or if it's just the case with you, as it can be a crucial element.

But one thing I don't understand is that being so educated and smart, how come you did not read the agreement and just signed it blindly (just so you could get the job) and then later when the problem arises, the entire blame is on the employer for getting it signed without giving time (which they legally cannot do). I may sound harsh, but this is a point many of us do not realize; such mistakes can really be troublesome in the future. You can't get lucky all the time.

Let's hear what others have to say.

Thank you for your quick response! Yes, the clause refers to not joining the client for a period of 12 months after leaving the company. However, since I do not have a copy of this agreement, is the "breach of contract" argument still valid? I have not shared this information with my current employer's HR yet, as I wasn't sure how it would affect me. Would it be wise to do so? I rechecked with a couple of folks from the batch of trainees who joined during that year, and none of them were given a copy of the agreement during confirmation. Can this be a valid legal point to counter their notice?

Hey, I agree it was foolish on my part not to have asked for a copy of the contract or even read through it completely before signing. I was a trainee then with big dreams and didn't imagine something like this would happen. No excuse for it, though. :)

Now, what valid legal arguments can I use to defend myself here...

Regards,
Princess12

Possible Outcomes and Timeframes in Legal Cases

Also, in the worst possible scenario, what are the potential outcomes if they decide to pursue this case? Additionally, is there a specific time period within which an employer should file a case in such scenarios? Will a case be valid in my situation since it's been almost 1.5 years now?

I am not sure which department you are in now. I suggest checking if there has been any recent problem between your current company and your previous company. The fact that you don't have any copy of the agreement or that you didn't read it well while signing doesn't make a difference legally. Ignorance of the law isn't accepted in courts. Please check as mentioned above and confirm.

Regards,
TS

Hi Princess12, I'm not in the HR department, and I think there seems to have been some problem recently. I'm not sure if this can be considered the reason, but the earlier company messed up on a recent project which did not go well with my current employer, and they had some tough conversations. It's strange that I received a notice immediately after this incident. Could this be linked somehow? Should I discuss this with our HR?

Legal Defense and Chances of Success

Please advise on how to proceed to legally defend myself and what my chances of success are?

Thank you,
Princess12

Hello Princess12,

To answer your query: "Strange, that I had to get a notice immediately after this incident. Could this be linked somehow?" — yes, there COULD be a link — in ALL PROBABILITY, there IS. That was the reason I asked what I asked... just to ascertain.

Suggest going to your present HR & explain the situation. And ask for their help to handle this. Remember two things:
1. 'An enemy's enemy is my friend' policy — which is what you should bank on. Incidentally, if you look closely, the reverse of this SEEMS to be happening from your ex-employer's side — 'my enemy's friend is my enemy' [they can't get even with your company, so they find you a convenient target — my guess is you must have earned a very good name here & have become 'sort of' indispensable]. One more possibility that occurs to me is that your ex-company MAY be thinking that YOU have some role to play in the present unpleasant relationship between the two companies.
2. Your job will become easier if your performance here has been good, meaning your word will have a much better weightage in such a situation. Your HR anyway needs to be told — better do it YOURSELF before they get to know of it through someone else.

Regards,
TS

Hello all,

Can anyone tell me the solution? I joined one of the advisory firms. There, I signed a 1-year bond, but due to some family issues, I left the job without any prior notice. Now, the company has served me a court notice, asking me to pay the amount of Rs 16,400. I only worked for 3 months in this company. Is this a legal issue? They claim that I breached the contract and the company wants to take me to court. Is this legal? Please provide me with a solution.