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Non-compete clause case

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1 Non-compete clause case on Fri May 05, 2017 8:43 pm

HawaiianPizza


Arresto Menor
Hi, I currently work as an AdOps in a company somewhere here in NCR. The company is more likely a BPO outsourcing company as they mostly cater with clients abroad. I applied for a higher position in the same industry still here in NCR and got the job. They mostly cater with local companies. My new company received a letter from my old company to cease and desist my application with them because I signed a non compete clause with my old company. The non compete agreement states that I shouldn't get employed to a direct competitor of their business which specializes in creation of technology, procurement of outsourcing services, software consulting in the next 2yrs. I think some of them applies to my new company but they are not direct competitor as one caters to foreign clients and the latter caters to local clients. Do you guys think I have a defense here? I really want to work with my new company and this case from my old company is a really bad obstacle. Also a note, when I resigned from my old company, I told my supervisor the company to which I will be transferring to but didn't tell/warn me regarding the clause so I thought it's okay. Also, there's an information around my old company that the clause is only applicable to 1 company (not gonna name it) as 1 of the old and big client of my old company transferred to that company. It was not written in the non compete clause but everyone in the office knows that and my old supervisor (who resigned) also told us this info. Please advise ASAP. Thanks

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2 Re: Non-compete clause case on Fri May 05, 2017 10:41 pm

lukekyle


Reclusion Perpetua
since the new employer was the one who received the cease and desist, what is their position? bec this is all moot and academic if your new employer will remove you because they dont want the hassle of the old employer suing them

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3 Re: Non-compete clause case on Tue May 09, 2017 2:21 am

HawaiianPizza


Arresto Menor
hi lukekyle, an update. A day after the my new company received the letter, I received a letter from my old company to cease my employment with my new company. They said that if I don't, they'll sue me in the ground of breach of contract. My new company told me that they will consult with their legal and evaluate if they'll rescind their offer to me or pursue with it (I've already signed a contract but haven't started yet because my start date has not yet passed). I think my old company is bullying me because since January this year, more than 5% of their employees resigned and they are only but a small company. I've consulted a lawyer regarding this and told me that non-compete agreements do not apply to rank and file employees, is this true? Based on my assessment, the best thing that could happen is that my new company retracts their offer to me then my old company will not pursue with the case but that will leave me jobless. Worst things is that they'll pursue with the case, I'll be forced to fight it and according to the lawyers it'll take at an estimated 2-3 years before a final verdict is made and I don't think I have the resources to fight that long.

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4 Re: Non-compete clause case on Tue May 09, 2017 8:13 am

lukekyle


Reclusion Perpetua
If you wish to avoid the lawsuit, you can talk with the new employer and withdraw your application. The old employer cannot sue you for applying, only for working for a competitor.

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5 Re: Non-compete clause case on Tue May 23, 2017 10:19 pm

Jadis

avatar
Reclusion Perpetua
The purpose of a non-compete is basically to protect company secrets, processes, proprietary and condidential information an employee receives or acquired during his employment. As long as you are privy to these matters regardless of your position, I don't see why a non-compete should not apply.

Besides, it's not like you are prohibited to work for similar companies forever, there is a 2-year period.

You can risk it by continuing your employment in the same industry elsewhere and defend yourself by saying that the other company isn't a competitor, but you have to prove that. I don't think a lawsuit is worth the hassle.

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