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I work for a small company which takes on project outsourced by other companies. The company has less than 25 employees.

The work contract says that employees have to work 1 years and can't resign. If an employee does resign, they have to work 2 month and 1 month without pay.

Two of us went to an on-site deployment at a client for 7 month to work on a project as associate software engineers.

Now the client company offered these two a job. The salary is quite good, so they accepted that offer and resigned from our company. However, another reason to resign was that management team members spread rumors about them being involved romantically (one of them is male and the other female). They complained to HR, but our HR manager did not take any actions.

My boss accepted their resignation and said that from today onward they would not get any more work assigned, they are fired he will try to take legal actions.

My question is: Can he take any legal actions?

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    That depends on any clauses their employment contract might have.
    – JustSaying
    Jul 4, 2019 at 8:58
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    Whenever you ask "is this legal", please always mention which country you are talking about. Employment laws vary a lot around the globe.
    – Philipp
    Jul 4, 2019 at 9:22
  • Please add a country tag to the post. Jul 4, 2019 at 9:23
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    The original question was very hard to understand, so I rewrote most of it. However, in some parts I had to guess what you actually meant. Please review my edit and point out if I understand something incorrectly.
    – Philipp
    Jul 4, 2019 at 9:34
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    You need a local lawyer. There is no way people on the internet can give you globally valid legal advice concerning a contract they don't know in a jurisdiction they don't know.
    – nvoigt
    Jul 4, 2019 at 9:51

1 Answer 1

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They need to go through your original offer letter and check if there is any non-compete clause.

Some companies may have a clause that prevents an amployee from working with other companies operating in the same domain (competitors) till a period of time after terminating the job with them.

They need to check if there's any such clause in the offer letter to which they are bound after accepting the offer.

If there is no such clause, they are at free will to work for any other employer (competitor) after satisfactorily serving the notice with the current employer.

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    even though it is sound avice to check non-compete clauses anyway, as they were on an assignment on that company what would need to be checked is any contract between the companies that prevents this from happening as they are clearly not competitors Jul 4, 2019 at 10:14
  • @fireshark519 Can such a clause be agreed to between companies without the knowledge of employees involved? If yes, then as I understand, such cases are between the two companies and not the employee and the employer company. Jul 4, 2019 at 10:19
  • yes those clauses are between companies, the idea is that if one company provides a contractor assigned to work on another company, that company is unable to extend an offer of employment for X period of time after that contractor stops working for them/finishes project/assignment. The employee does not need to know as this is an agreement between the company providing the service (contractor) and the one receiving the service Jul 4, 2019 at 10:50
  • @fireshark519 Right. The boss at the employing technically can't technically take legal action against the employees, but the sourcing company. The employees themselves could be unaware of any such clauses. Jul 4, 2019 at 10:52
  • Yes you are correct. Unless their contract was provisioned already taking into account assignments on other companies and have provisions for accepting job offers from companies they are assigned at. They need to make sure to get legal advice and read their contract. Jul 4, 2019 at 11:00

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