I work for Company A, and due to service tax avoidance purposes (all legal, I suppose), I have been offered an employment letter from another company, B. The directors of both A & B know each other, and therefore, they have come to this agreement. I have a non-compete agreement with Company A, which is valid for 1 year post leaving the company. The offer letter from A states that I need prior written consent from A to work for any other company. Both companies are based out of India. If I agree to the new offer letter, I will receive all my future salary and bonus from B and not from A. Salary slips, Form 16, etc., will all come from B.
Doubts and Legal Concerns
I have the following doubts:
1. Since I am not getting any formal exit from A, can I be an employee of two companies simultaneously, i.e., is it legal in India?
2. The offer letter from A mentions a monthly salary, which I wouldn't be receiving once I become an employee of B. So, is A legally bound to give me a salary? If A doesn't provide me with any salary, do I still have to file tax returns on that?
3. When I leave this job from A/B, will I have to resign from A or B or both?
4. For generic purposes like opening a bank account, etc., whose employment will I be showing (I will have salary slips only from B)?
Regards
From India, Mumbai
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Doubts and Legal Concerns
I have the following doubts:
1. Since I am not getting any formal exit from A, can I be an employee of two companies simultaneously, i.e., is it legal in India?
2. The offer letter from A mentions a monthly salary, which I wouldn't be receiving once I become an employee of B. So, is A legally bound to give me a salary? If A doesn't provide me with any salary, do I still have to file tax returns on that?
3. When I leave this job from A/B, will I have to resign from A or B or both?
4. For generic purposes like opening a bank account, etc., whose employment will I be showing (I will have salary slips only from B)?
Regards
From India, Mumbai
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I would suggest you discuss the matter very clearly with your bosses. No one else can give you a perfect answer here. Please clarify right now so that you do not face any problems in your future career. Remember to evaluate all the pros and cons before making any decisions!
All the best! Hope this helps!
From India, Delhi
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36All the best! Hope this helps!
From India, Delhi
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