Wipro drags former employee, who joined Cognizant, to court over non-compete clause breach

Wipro, a leading IT services company, has filed a legal complaint against a former employee Mohd Haque who recently joined competitor Cognizant. The dispute centers on alleged breaches of confidentiality and non-compete clauses in the employee's contract with Wipro.

The ex-employee, who held a senior position at Wipro, was privy to confidential information and client details during their tenure. Wipro claims that the individual, upon joining Cognizant, may be using this sensitive information to gain an unfair advantage and potentially harm Wipro's business interests. Notably, Haque made this move prior to the expiration of his non-compete clause, which was originally supposed to extend until August 1, 2023.

Haque, who had been with Wipro since 2010 and rose to the position of Senior Vice President and sector head for healthcare and medical devices based in the US, resigned from the company in June of the same year. According to Wipro's complaint, during his tenure, Haque was subject to post-employment restrictions that prohibited him from working with a select group of competitors, including Cognizant, for one year after his departure.

The allegations further detail that Haque engaged in deceptive practices by secretly transferring multiple Wipro files to his personal email account shortly before his resignation became effective. Wipro's IT team flagged this activity on June 22, 2023. The company claims that Haque misrepresented his intentions by falsely assuring them he did not plan to work at Cognizant, according to a report by The Times of India.

Wipro's legal complaint also mentioned that upon his promotion to SVP, Haque was eligible for equity awards exceeding $1 million over several years. However, Wipro contends that Haque has failed to repay the remuneration received during the last 12 months of his employment or the value of the equity awards.

The situation is exacerbated by a series of high-level exits at Wipro amid concerns about declining margins and a challenging fiscal outlook for the IT sector. Wipro demanded a jury trial and sent Haque a letter on September 29, 2023, reminding him of his contractual obligations and the potential consequences of his actions.

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