Results 1 to 2 of 2
  1. #1

    Default Changing Jobs to Work for a Client of Your Employer's Customer

    I am in New Jersey:

    I need help to understand the Prohibition on Solicitation clause in my "Employment Agreement".

    I am an employee of a consulting company ABC. ABC has a contract with XYZ vendor. XYZ has contract with PQR. I am working as a consultant in PQR company through XYZ. ABC does not have any contract with PQR. Now PQR wants to hire me as a full time employee.

    Is PQR is a client to ABC though it does not have a contract with PQR?

    Am I providing service to XYZ or PQR?

    My employer saying verbally that this clause does not prohibit me to join PQR as an employee as PQR is not a client for ABC or ABC does not have any contract with PQR. They are also saying that I am providing service to XYZ not PQR. Is that true?

    Does this Prohibition on Solicitation impose any barrier of my employment with PQR?


    A. Prohibition on Solicitation: Employee agrees that during Employee’s employment with ABC for a period of 1 Year following the termination of Employee’s employment with ABC, whether the termination is voluntary or involuntary, Employee shall not, directly or indirectly, on Employee’s own behalf or on behalf of any other person or entity:
    Solicit, undertake, or engage in the provision of Employee’s services to, or accept employment or assignment with, any ABC Client or Vendors with whom Employee had substantial business contacts through ABC during the one year period preceding Employee’s termination, or for whom Employee provided services through ABC at any time during the one year period preceding Employee’s termination, unless Employee first notifies ABC in writing of Employee’s intent, and ABC consents in writing to such activity; or
    Solicit, hire, attempt to hire, contract, or attempt to contract with any employee of ABC or otherwise encourage any employee of ABC to terminate his/her relationship with ABC; or
    Solicit, refer, negotiate the provision of, or otherwise encourage, a third party’s services to any ABC Client with whom Employee had substantial business contacts through ABC during the one year period preceding Employee’s termination, or for whom Employee provided services through ABC at any time during the one year period preceding Employee’s termination, unless Employee first notifies ABC in writing of intent, and ABC consents in writing to such activity.
    For purposes of this Agreement, “substantial business contacts” shall include interviews with a ABC Client or the preparation of proposals to a ABC Client or prospective client.
    You shall not any time during the term of your employment with the company or thereafter, under any circumstances, directly or indirectly solicit the company’s and/or any of its subsidiaries and/or affiliates personnel to leave the employment of the company and/or any of its subsidiaries and/or affiliates or apply for employment with any third party or encourage such personnel of the company to take any action or inaction that may adversely impact the performance by the company of its obligations under this letter and/or any other contract adversely impact the ability of the company to carry out its normal business activities. You further agree that you shall not engage in soliciting business or allied business that is in any way similar, identical or competitive with the business, activities, services of the company, or with those customers of the company with whom you had any contact, during your employment with the company and for a period of one year after you employment ceases with the company.
    In the event of a violation of this section, ABC shall be entitled to injunctive and other equitable relief enforcing ABC rights, without limitation of any other remedies available at law.

    Please let me know.

    Thanks

  2. #2

    Default Changing Jobs to Work for a Client of Your Employer's Customer

    I am in New Jersey:

    I need help to understand the Prohibition on Solicitation clause in my "Employment Agreement".

    I am an employee of a consulting company ABC. ABC has a contract with XYZ vendor. XYZ has contract with PQR. I am working as a consultant in PQR company through XYZ. ABC does not have any contract with PQR. Now PQR wants to hire me as a full time employee.

    Does this Prohibition on Solicitation impose any barrier of my employment with PQR?

    8) Solicitation of Partners, Principals and Employees. (Agreement with ABC and me)
    A Prohibition on Solicitation: You agree that, for two years following your departure from the Firm for any reason, you will not directly or indirectly solicit, retain, or assist others in soliciting or retaining, current or “Former” Firm partners, principals and employees to become associated with, or perform services of any type that the Firm can render on behalf of, you or any employer or third party, or to otherwise disrupt, impair, damage or interfere with the Firm’s relationship with its partners, principals and employees. “Former” Firm partners, principals and employees are those who became or become such within six months before or after you leave the Firm.
    B Remedies: If you breach this restriction on solicitation of Firm partners, principals and employees, in addition to any other legal or equitable remedies the Firm may have, you agree to pay the Firm an amount equal to 30% of the individual’s annual Compensation at the time of departure to cover replacement costs, and an additional 10% of the annual compensation to cover costs associated with his or her replacement.

    Thanks

    1. Sponsored Links
       

Similar Threads

  1. Non-Compete Agreements: Can a Former Employer Stop You From Continuing Work for the Client Through a New Job
    By suganya in forum Employment and Labor
    Replies: 1
    Last Post: 02-19-2014, 03:41 PM
  2. Contracts and Agreements: Independent Contractor Wants to Work Directly for Client's Former Customer
    By basementmom in forum Independent Contractors
    Replies: 3
    Last Post: 07-05-2012, 05:18 PM
  3. Restrictive Covenants: Can I Work for Same Client by Changing Employer
    By Machoman in forum Employment and Labor
    Replies: 1
    Last Post: 05-21-2011, 05:47 AM
  4. Denial & Appeals: Should You Be Denied CTB if a Work Injury is Involved in Changing Jobs
    By jannie in forum Employment and Labor
    Replies: 1
    Last Post: 04-22-2009, 12:09 AM
 
 
Sponsored Links

Legal Help, Information and Resources