Navigating Job Changes: Is It Legal to Work for a Client of My Former Employer?

Hi, my husband and I used to work for the same company (let's say ABC) in India. After some time, our company sent my husband onsite on an L1 visa, and I came on an L2 visa. I was sent onsite on long leave with the hope that my company would find a project for me in the same city once I got my work permit. Unfortunately, it's been a long time, and we haven't found a project yet. So, I floated my resume on job portals, and I got a call from a company (let's say XYZ) to work for their client, which I later found out is also a client of my current company.

I'm planning to resign from my current company and buy out the notice period if that is the need of the hour.

Questions Regarding Resignation and Legalities

Now my questions are:

1. Is it possible to submit my resignation to my current company via email?

2. Can I ask my new company (which wants me to work for them on a W2/contract basis) to buy out my notice period?

3. Most importantly, is it legal to work for the same client in the new company, which is also a client of my current company, after I resign from my current company?

Thanks,

Shubhi

I would also like to add that I have never worked for this client in my current company!

Steps to Consider Before Resigning

1. First, go through the terms of your employment that you have signed with your company.
2. Plan accordingly.
3. Try to negotiate with your HR to ease the terms on humanitarian grounds. It is advised not to tender your resignation that way; you can also schedule a session with your HR.

Happy Janmashtami.

Regards,
Skj MLL LW

Go through your company policy related to their clients and the applicability of the same on the part of the employee (irrespective of whether you have worked with that client or not). If it is not favorable, have a session with your HR for a favorable solution. To find out whether it is legal or illegal to accept employment in the client's firm, you have to check your company policy.

Once you resign, you become an independent soul and are free to work anywhere. However, I see two limitations:

1. If you have signed any agreement with your current employer stating that you are not allowed to work with competitors or their clients.

2. I assume your husband will be working with ABC, so even if number 1 is not in place, they might put him in trouble.

Regarding the notice period, it's a minor issue that can be resolved through mutual discussions. Yes, you can negotiate with a future employer to buy out your notice period in case they want you to join immediately.

Regards,
Ashok

I think you should go through the terms and conditions of your contractual agreement with ABC, as already brought to your attention. The only thing is when you submitted your resume through the job portal and were offered recruitment with XYZ, they would have done a background check or at least, I'm assuming, they went through your resume to know that you are working with such a company, so you are clear on that part.

Can I Ask My New Company to Buy Out My Notice Period?

Yes, you can ask them, and they might just sponsor your notice period buyout, but it depends on how desperate they are to get you into the system.

I agree with the suggestion to review your company's policy related to their clients and its applicability to employees who have worked with that client. If you have signed an NDA (Non-Disclosure Agreement), it is illegal to accept employment with the client's firm. This situation happened to one of my colleagues, who lost his job at both locations and had to pay financial compensation to his existing employer. I am an L&T employee.

It is advisable to first join an intermediate job before switching to the client's location.

Regards,
Spring

Yes, you can work with the client in a different company as the law does not prohibit it. The company cannot restrict you from working for a client in a different country, as their jurisdiction ends in India. Many individuals on H1B visas in the US have joined their clients without issues. Clients may offer you a job, process your green card, and have you join after a brief break.

You are safe to proceed. US laws prohibit non-compete agreements without appropriate compensation and only restrict strategic positions from joining competition. Companies cannot stop employees from joining their clients. Filing a case would be against the employer, and since you have a job offer from the client, it indicates no agreement between your company and them.

You are free to join the client. Best of luck!

Things to Consider First:

1. Does your company allow such a kind of exit or resignation? What do the policies state? What are the terms and conditions?

2. It won't be 100% certain that the new company would waive the notice period unless they are desperate for an employee to fill the vacant position. What if they are testing your loyalty to work for them? They might fear that you will leave in the same manner, especially when your husband will be transferred to another city far from you. It seems that the length of time you work for a specific company is determined by your husband/family.

3. There is no problem working for the client of your current company. However, it is good to leave the company through the correct procedures. Give one month's notice or forfeit the salary for that month, or pay in lieu of notice, clear things with the company, and hand over everything that was in your custody.

Regards,
EssyYrimo

Dear Subhi, I fully endorse and agree with the opinion of "Anonymous," as quoted below:

It's unfortunate that he has chosen not to reveal his identity. He deserves kudos for giving an appropriate, well-deliberated, and unambiguous response.

"Yes, you can. The law does not prohibit you from working with the client in a different company. And the company cannot prohibit you from working for a client in a different country. Their jurisdiction ends in India. You are not taking up the job in India but in the United States. How do you think many of those who have gone to the US on H1B have joined their own clients? The clients offer them the job, stating they will process their green card and ask them to take a break of 1 or 2 months and then join them.

So, you may go ahead. You are safe. No one will fool around with an employee in the US because the compensation for mental harassment that you can claim is huge, and the companies do not want to face that.

And US laws prohibit the application of non-compete agreements without appropriate compensation being paid to the employee for not joining the competition. Secondly, US laws also specify that only certain positions, which are strategic, can be prohibited from joining the competition. Operational positions cannot be restricted from joining the competition. And US laws totally prohibit the companies from prohibiting the employees from joining their clients. But they can sign an agreement with the client, whereby they insist that the client does not recruit their employees. So, if at all a case has to be filed, it will be against the employer. And the very fact that you have been offered a job by the client means your company does not have an agreement with them.

So, you are free to join the client.

All the best."

Attribution: https://www.citehr.com/469579-subjec...#ixzz2dLPZetOX

Indian companies, while aping the system of employment, only follow those that suit them, like "hire n fire," and in respect of other matters, they follow an ancient archaic system of BUREAUCRACY that again suits them; like bond, relieving letters, long notice of resignation, non-compete, or non-disclosure agreements for any sundry positions, etc. Instead of employee engagement and motivation, "their HRs" are always on the lookout for policies that muzzle and bind their employees. They cannot even imagine that an employee who left them could come back to them - for the simple reason that they themselves know that nobody would like to work in their company even if given a chance.

Warm regards.

There are some good points and options in the above threads; however, I have a slightly different thought. Since the client is already doing business with your present company, is it possible for you to take up the position through your present company? i.e., ask your present employer to pitch for the position to the client, and if they get the business, you can get allocated there.

If this works out:

1. There is no hassle about legal issues.
2. You get continuity of employment.
3. Your present company gets business.
4. The client does not have to buy out your notice, and you can start work immediately.

Also, bear in mind that your company has business relations with the client; if the client pulls away people (directly or indirectly) from your company, they will firmly object to the client. It will be a situation like "when two elephants fight, it's the grass that suffers the most" (here the grass would be you).

I am not fully aware of your situation but just giving you a different option to think about.

Best Regards,
Ritesh Shah