Can My Employer Add a Non-Compete Clause After a Year? What Are My Rights?

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. However, 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 whom I am presently working for one and a 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 an HR firm. 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 responsible for this?

Regards

The NDA & NCA agreements are pretty standard nowadays in most companies, both IT and 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 and well-protected, employers also expect the same through such agreements.

First and foremost, please look into the veracity and fairness of the request. Maybe this HR company was asked by the IT company (client) where you work to have such an agreement put into practice only now? The HR company may also be trying to protect their interests in the process.

Next, understand that there is a 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 up to you to decide whether you are better off here or with another company where you may also need to sign such agreements.

Regarding your contention that your employer and the place where you work are not competitors, realize that the HR company would not have hired you if it were not for the contract/assignment they have from this IT company, which they are executing through you. They are only trying to protect their interests. You may have also noticed that there is no bar on your working in any other company, even if they are clients of this HR company (at least it's usually that way with such agreements).

Also, regarding your query about the legality of the issue, I don't think it's a legality issue at all. It's entirely up to you whether to sign or not. You know the consequences if you don't want to.

All the best.

Regards,
TS

Yes, your company can do that only if you are going to do the same nature of work with the client company if you leave the current organization. If the nature of work is different, then your company cannot stop you from doing the same.

As per Article 19(g) of the Indian Constitution and Section 27 of the Indian Contract Act.