Bangalore – Wipro, a major player in the IT industry, has initiated legal proceedings against more than 10 senior executives who departed the company in the previous year to join a competitor. The case brings attention to the intricacies of non-compete clauses in employment contracts and potential legal repercussions for breach.
Wipro has implemented stringent non-compete restrictions on its senior executives, barring them from joining specific rival firms for a minimum of 12 months post their departure. The list of restricted companies encompasses Accenture, Capgemini, Cognizant, Deloitte, DXC (formerly HP), HCLTech, IBM, Infosys, Tata Consultancy Services (TCS), and Tech Mahindra.
Among the executives facing legal action, Wipro’s Chief Financial Officer, Jatin Dalal, and Senior Vice President, Mohammad Haq, have moved to Cognizant, prompting Wipro to file a case against them for alleged violations of the non-compete clause in their employment contracts.
Wipro contends that Jatin Dalal’s exit has caused financial loss to the company and is seeking compensation of Rs 25.15 crore. Additionally, Wipro is demanding interest at an annual rate of 18 percent until the complete amount is recovered. The dispute has been referred to arbitration by the Bangalore City Civil Court.
During his tenure at Wipro, Jatin Dalal played a pivotal role in the company’s acquisitions, formulated strategies, and made decisions concerning large deals of $100 million and above. He also served on the investment committee of Wipro Ventures, a $300 million strategic fund dedicated to early- and mid-stage startup investments.
Apart from Jatin Dalal, Wipro has also taken legal action against Mohammad Haq, the former senior vice president and head of healthcare and medical devices (America). Haq, who has also joined Cognizant, is accused of possessing seven files containing confidential information, allegedly sent from his personal Gmail account, thus violating the non-compete clause.
The legal proceedings shed light on the intricate nature of non-compete agreements in the IT sector, as Wipro endeavors to safeguard its interests and confidential information. The resolution of the case against these former Wipro executives will hinge on the outcomes of arbitration and subsequent legal actions.
