Sr Generalist - Hr
Human Resource
Recruitment/talent Acquisition, Career Counselling
Service As Dgm-hr/legal
Rakesh Pd Srivastav
Chief Manager - Hr (plant Head Hr)
+5 Others

Hi all,

I have been working in a company. then i had started my own business while on their service during probation period. they came to know about my business as in my free time in office i accessed the website relating to my work. That business is same as of the companies business. They are threatening me that I had done breach of trust and would file case against me.

There are no terms and conditions or any kind of agreement which prohibits me from doing any other work/business which may interfere or not interfere with companies target. simply to say . my offer/appointment letter only says "We are grateful to appoint you for xyz position with xyz salary ctc. and you are on 6 months probation period after which i become permanent employee and then my services is terminable by either party with 15 days notice period or salary in lieu of it..

And also the company is not registered with government of india

Please tell me what should i do. they have not given me any warning or notice that i should not repeat or continue my personal work. instead they have directly sent a termination letter.

From India, Gurgaon
Dear Member
Before replying to your question I would like to know a truthful answer from you.
As you stated that you have started your own business which is in lines with and in direct competition with your employer. If the same situation happens in your newly started company , would you allow the person doing the same business as yours.
Please reply to this query and may then other fellow members will also be able to give their comments.
Preetam Deshpande

From India, Mumbai
Further to what Preetam Deshpande mentioned, looks like [mind you--this is a 'perception'] you actually planned it out, taking into consideration the lack of any specific clauses in the Offer Letter related to doing something that creates a conflict of interest situation.
You didn't mention your experience level--but my gut feel is that you are NOT a fresher. Obviously you ought to know the consequences of your actions--like the legal saying goes: ignorance of law is not an excuse.

From India, Hyderabad
Dear Vishnuelectric,
Just wanted to know, does this mean that you have no problem with termination if the warning or threatening is practiced by the company??
If they would have done so and still if you would have continued a parallel business then the termination is a valid one?? Right??
What is it that you are worried about - being terminated or being not warned?? At the first place, it is a code of conduct that one should not run a parallel business of same nature when employed - it is similar to dual employment. If your company has not mentioned in the appointment letter does that mean that you would not follow the code of conduct.

From India, Ahmedabad
Dear Vishnuelectric,
The act done by you can be regarded as stealing of the companys business. You and the company in which you are working are doing the same business, thus it is quite hard to beleive that you didnt took the advantage of the companies existing customers. Also a competitor cannot work for the company. Thus the company has every right to terminate you and sue you for your actions.
Gurpreet Aidhen

From India, Anjar
Mr. Vishnu M/S Preetam/TS rightly advised you. Since you was on Probation there is no need of any notice or warning. the servises of a probationer can be terminated without notice. pkjain
From India, Delhi
Hello Vishnu,
The Company has made an illegal act by terminating your service without conducting enquiry. Firstly probation period of 6 months itself is not permitted by law. Only 3 months period is allowed. In your case infact you can file a case against the Company.
S.M.Paranjape,Adv (Labour law consultant)

From India, Pune
Hi Vishnu,
Indian labour laws permit 3 months of probation period. But if your employers have a signed document for you accepting 6 months probation period then you cant hold legal action against them.
Secondly, Indian Labour laws also consider the below mentioned illegal where charges can be placed:
1) Holding 2 or more employments or professional commitments with independent organizations without informing all the concerned employers.
2) Setting up a business or seeking employment with an organization which could prove to be a direct competition to your current assignment.
3) Using office infrastructure for personal use without the consent of the management.
Regret to inform but you are guilty on all 3 accounts.
My 2 pence: Get a consultant before things become ugly.

From India, Kolkata
Dear Vishnu,

I think, you need to do some introspection and try to find out as to what you did (personal parallel business while being in a job) was correct ? In fact, Mr Preetam has rightly pointed out that even you wouldn't have tolerated had your own employee done the same parallel business as that of yours. Personal business while being in the job is not allowed and almost all the companies prohibit their employees to indulge in any type of business while being in the job. The same also used to be one of the clauses in most of the the appointment letters. If this clause doesn't find mention in your appointment letter does not mean that you do every thing which has not been mentioned in the appointment letter. Ignorance of law /rules is not an excuse. Many companies also bind their employees by not allowing their employees to join their competitors within 2-3 years of leaving the company.

You used company's resources, secrets, technology (formulas, drawings etc.) to do your own similar type of business which is not acceptable. Company is justified in terminating you.


Rakesh Pd Srivastav

From India, Gurgaon
Dear Mr. SM Paranjape/Mr. AM
I have no idea about the Act/Law in which six months probation is barred or there is any limit of three months. I shall be thankful if you kindly enrich me in this regard.

From India, Delhi

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