Subject- Is It Illegal To Work For Previous Company Client

Hi,

Me and my husband used to work for the same company (say ABC) in India. After sometime our company send my husband to onsite on L1 visa and i came on L2 visa. I was send onsite on long leave with a hope that my company will find a project for me in the same city once i get my work permit. Unfortunately, its been long and we haven't found a project yet. So i floated my resume job portals and i got a call from a company(say XYZ) to work for their client which l 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.

Now my question is:

1. Is it possible to put down my resignation in my current company on 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 Important, 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..!

1. First go through the Terms of your employment you have signed with your company.
2. Plan accordingly.
3.Try to negotiate with your HR to ease the terms on humanatory grounds.
It is advised not to tender your resignation that way,can also take a session with your HR.
Happy Janmashtami
Skj
MLL LW

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

Once you resign you become a independent soul and free to work any where. However I see two limitations
1) If you have signed any such agreement with your current employer which says that you are not allowed to work with competition/or their client.
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 notice period its a small issue which can be resolved by mutual discussions. Yes you can negotiate with future employer to buy your notice period in case the want you to join immediately.
Regards
Ashok

Hi ,
I think you should go through the terms and conditions of you contractual agreement with ABC as already brought to your attention
whereas the only thing is when you submitted your resume thru job portal and were offered recruitment with XYZ they would have done a backround check or atleast i m assuming they went thru your resume to know that you are working with such a such company so you are clear on that part
Can i ask my new company (which wants me to work for them on a W2/contract basis) to buy out my notice period?
yes you can ask them and they might just sponsor your notice period buy out, but it depends on how desperate they are to get you in the system

Hello all,
I am agree with the guys to go through your company policy related to their clients and applicability of same on the part of employee where you have worked with that client.
If you have signed NDA (Non Disclosure Agreement); it is an illegal to eccept employment in the client's firm. It has happend with one of my colleague, who had lost his job at both the locations also paid financial compensation to the existing employer. I am an L&T employee.
Better you join intemediate job first then switch to client location.
Regards
Spring

Yes you can. The law does not prohibit you to work with the client in a different company. And the company cannot prohibit you to work 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 join them.

So, you may go ahead. You are safe. No one will fool around with an employee in 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 application of non compete agreements, without appropriate compensation being paid to the employee for not joining the competition. Secondly, US laws also specifies 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

Things to consider first:
1.Does your company allow such kind of exit/ resignation? What does the policies state? What are the terms and conditions?
2.It wont be 100% that the new company would buy 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 the same way especially when your husband will be transferred to another city far from you. It seems that your length of time to work in 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 right procedures. Give one month notice or forfeit the salary for that month or pay in lieu of notice, clear with the company and handover everything that was in your custody.
EssyYrimo

Dear Subhi

On all your 3 queries, I endorse and fully agree with the opinion of "Anonymous", as quoted below; again.

Its 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 to work with the client in a different company. And the company cannot prohibit you to work 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 join them.

So, you may go ahead. You are safe. No one will fool around with an employee in 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 application of non compete agreements, without appropriate compensation being paid to the employee for not joining the competition. Secondly, US laws also specifies 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 suits them, like "hire n fire", and in respect of other matters they follow 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. etc. Instead of employee-engagement and motivation; "their HRs" are always on the lookout for policies that muzzle and bind their employees. They can not even imagine that an employee who left them; can again 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.