Green Card Holder converting contracting job into full time in USA

[sunshine_84 11]

One of my friend came to USA on immigration (green card) 5 months ago and joined Indian consultancy firm to get a contracting job in software development. My friend is happy with the job and he has now got an offer from his manager to convert into a full time. When he joined Indian consultancy firm they asked him to sign an agreement to not convert into a full time at the same company at least for 1 year from the date of joining.

My friend is really interested in accepting a full time offer, but he is worried about what legal implications come into place by accepting this offer.

Indian consultancy firm only created a resume for him and did resume marketing for a job search for less than a month. If indian consultancy firm do not agree to release him, do they have any rights to take legal actions for a compensation?

Please share any legal advice for this issue.

Thanks in advance!

[Darnell 8,478]

If indian consultancy firm do not agree to release him, do they have any rights to take legal actions for a compensation?

Depends on the contract that was signed.

Review the contract, and report back, when you have time, aye?

Usually, for conversion (having nothing to do with Indian anything) the client company pays 3 months of the contracting company's fees. And that's covered in the agreement the client company signed with the Consulting firm.

So, without you having any signed contracts in front of you, for you to review, there is not any real advice to tell you.

Why? Variations occur all the time. Is no concept of 'normal', even though I've written about it.

Edited September 6, 2013 by Darnell

[sunshine_84 11]

So, without you having any signed contracts in front of you, for you to review, there is not any real advice to tell you.

not sure what exactly you mean, but I did read the copy of contracts signed so I do know what's written on it. I just don't fully know the legal complications for doing this.

Actually I forgot to mention, there are multiple layers in this:

Client -> Consultancy firm # 1 -> Consultancy firm # 2 -> Consultancy firm # 3 -> My Friend

There are 3 different consultancy firm layers are involved between my friend and client. So he signed 1 year contract for documents requested by firm # 1 and firm # 3. Firm # 3 is Indian consultancy and they write a paycheck for every pay-period. Client knows only firm # 1 exists between them and my friend, so they are not aware of firm # 2 and 3. Firm # 1 has lot of other consultants at client's office, and client thinks they will settle with firm # 1, but I don't know how and whom should handle firm # 2 and 3.

Hope this helps to give a better advice.

Edited September 6, 2013 by sunshine_84

[Darnell 8,478]

so, reread the contract he signed.

[sunshine_84 11]

so, reread the contract he signed.

you still don't get the question I am trying to ask here. I already said earlier that Indian consultancy firm which pays my friend has a signed agreement to stay with on their payroll for at least 1 year, but does not have a clear information on penalty that may cause if they disagree to relieve him.

I am interested in knowing the legal implication (lawsuits, compensation etc.) for moving from contract to full-time position when not all layers agree to release the contractor. I am expecting that client will pay some money to their direct contracting firm, but may not pay to all layers. So layers which doesn't benefit from this change may not agree to release.

[agnesb 47]

Maybe your friend should make the client aware of consultancy firm #3 and it should be clients HR that deals with it and firm #1 and use their employment law knowledge to evaluate if your friend transition would be lawful if agreed with both firms or even just #1?