FRAUD EMPLOYEE EXPORTING BUSINESS To His Own New Firm - CiteHR
Nathrao
Insolvency N Gst Professional
Tajsateesh
Recruitment/talent Acquisition, Career Counselling
Ravind7@gmail.com
Terminal Chargehand Cum Loading Master

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Hello Guys-
I need serious help here as being an owner I recently found that one of my employee has been cheating us since a long time and he started his own same business firm few months back and he is sitting in my office but working for his own firm. Also he has been routing all the business clients and connection from here to his own firm. We already have NDA signed with him which clearly explains that he can not do any of such things while working here.
We need to take a serious action on this but help me where to start and best possible ways to recover from this.
Additionally I also found that few employees are also supporting him on this fraud and working for him while sitting in my office.
Please guide me with some immediate responses!

What is the line of business your company is doing?

List out customers whom you have lost due to this activity.

Discreetly try and find out why they have left.

Keep a tab on this employee.

What is the modus operandi of this person in taking away customers?

Is he working through company laptop in which case you suddenly withdraw his laptop and give him another so the laptop can be checked for evidence.this will have to be done suddenly and without time to delete evidence.

Change the job profile of some of the employee friends whom you suspect are involved in this racket.

Step up level of supervision and introduce additional authentications for jobs being done by the person and his friends.

Post the clauses of NDA(suitably masking names etc) relevant to the discussion.

What is the job profile of employee who is cheating you?

Does your office have any business tours or other branches?

If so temporarily send him elsewhere on pretext of work-just to see his reaction.

After collecting evidence you can sue him for violation of NDA,besides dismissing him following due procedures.

Further to my above post,find out details of your employees new firm to build up evidence.Once evidence is accumulated you can initiate firm action against him and his friends.
Agreed with Mr Nathrao on your next line of action.
As an owner of the company you have all the rights to protect your business but in same time you also dealing with a cheating employee protected under the labour law.
You will need as much evidence as possible to be collected before you move in. You may also want to hire a private investigator to collect the needed evidences.
With the all details in hand not only you could terminate him, if the law permits you want to sue him for damages or lost of business.

Hello Bharat,
I concur with what Nathrao & Ravindran Raman suggested.
The core principle in such situations is to collect as much evidence as possible BEFORE you move to take action....whatever it may be. Else, such guys won't leave you anything for you to prove.
And suggest consult a Criminal Advocate to figure-out WHAT evidence you need to gather to make your allegations stick in Courts......basically work backwards.
Reg the possible action(s) AFTER you gather the evidence, I would suggest you go for Criminal/Police Complaint rather than a normal legal suit--that will be more effective & MORE importantly protect your client-base [you can inform this aspect later to all of the clients you seem to have lost because of these guys]. That will seal the fate of these guys for future too.
All the best.
Rgds,
TS

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