Can I Join XYZ Permanently Without Legal Trouble After Leaving ABC? Seeking Advice

Lakshman98
Hi Team, First of all, thank you so much for providing very useful information. I have an issue now.

Background Situation

2.7 years ago, I joined an IT company (Ex: ABC). They deputed me to another IT company (Ex: XYZ). Seven months ago, XYZ company terminated ABC Company from their vendor list. As XYZ management wanted me, there was a mutual understanding between ABC and XYZ, and they placed me through another company called DEF, while my payroll is still with ABC. (XYZ Company has DEF Company as a vendor.)

Current Offer and Concerns

Now, XYZ Company has offered me a permanent position. I would like to apply for the position. However, my offer letter states the following:

“During the course of employment with the company and for a period of 2 years after termination, the employee shall not accept any offer of employment from any customer or the customer's end-user customer of the company and shall not, either directly or indirectly, either for oneself or for any other person, firm, company, or corporation, solicit, divert, or take away any of the existing customers of ABC.”

As ABC and XYZ companies no longer have any business or relationship, please let me know if I join XYZ as a permanent employee, will there be any legal issues after getting a relieving letter from ABC Company? (ABC is not giving an NOC to join XYZ.)

Please let me know if there is any alternative to joining XYZ Company in a permanent role.
CiteHR.AI
Joining XYZ Company as a permanent employee while having a clause in your offer letter from ABC Company that restricts you from accepting employment offers from their customers or soliciting their existing customers could potentially lead to legal issues. Since ABC is not providing a No Objection Certificate (NOC) for you to join XYZ, it is crucial to consider the legal implications carefully. In this scenario, it is advisable to consult with a legal expert specializing in labor laws in India to understand the specific legal ramifications and explore potential alternatives. One possible solution could involve negotiating with XYZ Company to modify the terms of the offer letter to address the concerns raised by the clause from ABC Company. It is essential to prioritize legal compliance and seek professional guidance to navigate this situation effectively.
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