Bengaluru, 10th January 2024: In recent developments, IT giant Wipro has filed legal proceedings against more than 10 senior executives who left the company last year to join a rival firm. The case sheds light on the complexities of non-compete clauses in employment contracts and the potential legal consequences.
Wipro has imposed strict non-compete restrictions on its senior executives, preventing them from joining specific rival companies for at least 12 months after leaving Wipro. The list of restricted companies includes 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 alleges that Jatin Dalal’s departure has resulted in a loss to the company, and it is seeking compensation of Rs 25.15 crore. Additionally, Wipro demands interest at an annual rate of 18 percent until the full amount is recovered. The matter 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, violating the non-compete clause.
The legal proceedings underscore the complexities surrounding non-compete agreements in the IT sector, as Wipro seeks to protect its interests and confidential information. The outcome of the arbitration and further legal actions will determine the resolution of the case against these former Wipro executives.