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  #1  
Old 10-24-2012, 05:51 PM
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Default Jumping to competitive vendor

Hi Guys,

I need some help in understanding the risks and morality in the following scenario.

I am working for Indian based MNC at USA. My client wants to give this project to another vendor but only if I get recruited by that vendor. Vendor is actually ready to recruit me with an attractive package.

1) I am working for my current employer more than 6 years.
2) I have signed non-compete clause saying that I should not leave this job at onsite/offshore until completion of two years after my onsite tenure.
3) I have not asked for this change but still package looks attractive to me.
4) If I leave my current employer then the project itself will go to different vendor.
5) The new vendor is promising that client's management will take care of smooth transfer.

My questions:

1) Is there any risk in accepting this offer?
2) Is that ethically correct to accept the offer? Because if I leave my current employer then the project itself will go to different vendor.

Please advice
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  #2  
Old 10-24-2012, 07:10 PM
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apoojo is a splendid one to behold apoojo is a splendid one to behold apoojo is a splendid one to behold apoojo is a splendid one to behold apoojo is a splendid one to behold apoojo is a splendid one to behold apoojo is a splendid one to behold
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How aggressively your employer will pursue you (and the non-compete), only you know best.

Either you will have a smooth transition and that will be the end of it.

The other scenario is your company brings in a legal notice citing violation of terms. While they can sue for damages, proving damages is very difficult. But they can bring a stop on you starting work at the client or new vendor.

Me and another co-worker were in a similar situation many years ago. My co-worker said "Screw the employer" and joined the mid-vendor. My employer went after him with a legal notice and finally the mid-vendor had to buy him out.

If you think your vendor or client would help you through any legal issues, go for it. Most likely your present employer will not create any issues. The ideal case would be the client terminates with your employer and after a week, you terminate with your employer and join the new vendor. This is safer since if you quit and then the client follows you, your employer can claim damages.

Regarding ethics - give your non-compete to a lawyer and he will rip it apart. Saying you have to stick with the company for 2 years after an onsite can be argued against in the court. But we would rather avoid the court So there is nothing ethical your employer is doing which makes me say you should not worry about ethics. If you think the move will be worry free - do it!

Good luck!
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  #3  
Old 10-24-2012, 08:48 PM
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@apoojo:

Thank you so much for your detailed response. Now I got a much better idea on how to handle my situation.
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Old 10-24-2012, 10:01 PM
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2009EB3 is infamous around these parts
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"Non-compete clause" is typically an enforceable option but not necessarily a restriction that would apply.

It is enforceable if you determined you would do so as a competitor(working with another company on same project, or replace the current project/product that your current company developed with competior's). Which is exactly your case.

If you are going to work for the same client in another project(which is not a competition to your current company), then typically companies will not use the non-comptete clause.

I would suggest to review the contract with new vendor and client before accepting the job. Good luck.


Quote:
Originally Posted by giri_ragav View Post
Hi Guys,

I need some help in understanding the risks and morality in the following scenario.

I am working for Indian based MNC at USA. My client wants to give this project to another vendor but only if I get recruited by that vendor. Vendor is actually ready to recruit me with an attractive package.

1) I am working for my current employer more than 6 years.
2) I have signed non-compete clause saying that I should not leave this job at onsite/offshore until completion of two years after my onsite tenure.
3) I have not asked for this change but still package looks attractive to me.
4) If I leave my current employer then the project itself will go to different vendor.
5) The new vendor is promising that client's management will take care of smooth transfer.

My questions:

1) Is there any risk in accepting this offer?
2) Is that ethically correct to accept the offer? Because if I leave my current employer then the project itself will go to different vendor.

Please advice
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