Hi Friends, Need your inputs on the below matter.
Our staff, Mr. XYZ has been in employment with us for almost a year now. Recently, we found out that he is running a separate company and is a director in that company. This is clear violation of the Company's code of conduct.
What stand should we take in due consideration of the labour law norms. How do we recover the salary paid to him over the period of time ? Please do send me relevant responses or labour law links to tackle this case.
Thanks and Regards,

From India, Mumbai
Assistant Manager - Hr
Nagarkar Vinayak L
Hr And Employee Relations Consultant
+1 Other

Nagarkar Vinayak L

Dear Colleague,
Before thinking of any action, please check out following:
1. Any service condition in the appointment letter signed by him which conveyed that the double employment is not permitted.
2. Whether the code of conduct is communicated to him.
3. Did he disclose at the recruitment stage whether he was associated with any business in any capacity. ( Does your documentation procedure require him to reveal this?)
4 Whether his non- disclosure adversely affect your business interest or is it only technical violation of the service condition.
After scrutinizing above and any other relevant aspect, if you believe that his continuence is not desirable, explain to him and obtain his resignation and let him go.
You need to relook at your documentation procedure which seem to have gap as it did not require him to disclose this vital information.
Vinayak Nagarkar
HR and Employee Relations Consultant

From India, Mumbai
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From United States, Clifton

Dear Mr. Josheph,
Mr Nagarkar explained well on querry " violation of code of conduct". You can terminate, but the action should not bounce back.
Before going to catch, better check at your end that the employee has violated the code of conduct and breach of employment contract. You need to calculate your loss that caused to you for the employee for his involvement in other employment.
Business is not considered as employment.
At best you can call him for an explanation for the matter you considered as violation and wait for the reply from the employee. Many a times reply gives ample opportunity to take an action.

From India, Mumbai

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