2024-01-01 14:29:16
The software industry in India has long been seen as the dream industry for young college graduates looking for a job. With the promise of air-conditioned office spaces, opportunities to work abroad, higher pay, and more holidays, it’s no wonder that many are drawn to this sector.
However, it’s not always smooth sailing, especially when it comes to switching from one company to another within the industry. Many software companies have non-competition agreements in place, which prevent their employees from joining a competing company for a certain period of time.
One such company is Wipro, founded by Indian billionaire Azim Premji. Wipro has a policy of banning its employees from joining rival companies for about 12 months.
This came to light recently when Jatin Dalal, who had served as Wipro’s Chief Financial Officer for 21 years, decided to resign and join another well-known software company, Cognizant, within just three months. As a result, Wipro filed a lawsuit against him seeking compensation of Rs. 25,15,52,875.00, with the case set to be heard in court on January 3.
It’s worth noting that Jatin’s annual salary at Wipro had dropped from Rs 12 crore to Rs 8 crore, while his new annual salary at Cognizant is reportedly Rs 43 crore.
This case raises questions about the enforceability and fairness of non-competition agreements in the software industry, as well as the potential impact of such legal battles on the talent pool and competitiveness of companies within the sector.
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