Non Competent Agreement and Layoff

P

parshu

Registered Users (C)
Hi all,

I apologize to put this question here as it is not a 485 related question.

My question is, my company(consulting) has said that it will lay me off during last week of July. And I want to join the Client(I worked with this client for nearly 4 years). I have a non-competent agree ment with my company saying that I cannot work with the client. If the company lays me off does the non-competent agreement hold. I mean can I go ahead and join the Client.
I would really appreciate responses

Parshu
 
Parshu,

In my view you are free of all the agreements once the company lays you off. You are free to go anywhere after that.

Check with a lawyer and read carefully the agreement that you signed.
 
Dear:

Thank you very much for the response. I will try to check with the lawyer.

Parshu
 
Originally posted by parshu
Hi all,

I apologize to put this question here as it is not a 485 related question.

My question is, my company(consulting) has said that it will lay me off during last week of July. And I want to join the Client(I worked with this client for nearly 4 years). I have a non-competent agree ment with my company saying that I cannot work with the client. If the company lays me off does the non-competent agreement hold. I mean can I go ahead and join the Client.
I would really appreciate responses

Parshu
Click to expand...

I think non-compete (not non-competent!) agreements hold regardless of who terminates employment. Read the agreement carefully. What is the time frame specified? Usually the time is 1-2 years.
 
HI nkm-oct23,

I am sure you r right abt the wording. And Yes my agreement also says something like upon termination i cannot work for 1 year to the client. Does layoff hold this agreement. SOmebody told me that if a employee is laid off and if by chance employer goes to the court, it will not accept the agreement as I was laid off and not resigned or fired.

Also if I work to the client thru other consulting company is it same.

Thank you
 
do you have a job offer from the client company, because they still have a need for your skills? if so, why is your present employer laying you off, when you can be out billing for them?

if they are laying you off for no fault of yours, then they might not pursue the non-compete clause, whatever its time period, since they might understand that you have to put food on the table for your family. i think you have a good chance to make them understand that. if you are joining the client when they could have made more money out of you, then it might not be very smooth sailing.
 
Hi Pork Chop

I really appreciate your resposne.

The situation is like this. My consulting company is not doing well. This current poject which I am is not earning full billable hours. The client wants my company to work on it but since the revenue in this geographic area has been almost nil my company wants to close this pratice and transition this project to somebody else.

Thank you
parshu
 
Talk to your present company and convince them that you are not leaving the company on your own and they should not have any problem by you joining the client and ask them to take you out of "non-compete" clause. You can also feel what their mood is and if it is not in your favor, you may wana talk to a lawyer bcecause there are always some loop holes in a clause.
 
There are few thigns that is worth a look:

- to begin with if the client compnay (that is willing to hire you) is aware of this clause, they will not hire you; it is too much trouble for them (last thing they want to do is to get into some litigation over you); so be honest with this client company and tell them the situation;

-if this client compnay is doing good and see a value in you, they might offer your consulting compnay some "conversion fee"; say $5000/- or less; this way client compnay lawyers can add an "addendum" to the existing contract that they are hiring you as a full time employee with a "specified" conversion fee of $5000/- and hence the the "non-compete" clause is null!!!

-OR, if you have good relation with your consulting compnay, just work with them to nullify this clause; pay "what ever" from your pocket and get out of this; you can also give them other incentives like you will help them to grow the account once you become a manager/lead/etc
 
Hi RPKEI,

Thank You.
I want to work as a contractor to the client company and not as a full time employee (This is a very big Pharmaceutical company (Pfizer)and will not take me a full time employee).

parshu
 
I am pretty sure you are free

If you company lays you off, they automatically free you of ALL obligations of your employment contract. It is not reasonable that they can free themselves of their obligation to pay you and expect you to still be obligated not to work for the competition. If that was the case, then slavery would still be legal. If they don't want you to work for the competition, then they must pay you a salary.

I wouldn't even bother checking with a lawyer.

By the way I think misquoted your contract:
It is a non-compete clause, not a non-competent clause. If you were not competent then you wouldn't have gotten the job in the first place.:D
 
And another thing...

Whatever you do, DONT QUIT BEFORE THEY LAY YOU OFF. If you quit and work for the competition, they can screw you because then you are violating your non-compete clause.
 
Hi FunkyJunky,

Thanks for the reply and also the humorous touch in the end.
I will let everybody know how it goes. ANd def I will Not quit, If I quit i have other agreements like the GC fee etc. So I have to wait till the date of Layoff. The date is July end as told by my manager. I am just keeping fingers crossed. Hope this works out.

Parshu
 
You must log in or register to reply here.
Top