Varsha Chaudhary
What legal action can be taken against employee having conflict of interest
From India, Delhi
Dinesh Divekar
Business Mentor, Consultant And Trainer
Labour Law & Hr Consultant
Varsha Chaudhary
Sr. Executive

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Dear Varsha,

Needless to dwell much on the general definition of the term conflict of interest. In employment context, it denotes the personal interests of an employee running counter to the interests of the organization wherein he is employed and resulting in biased discharge of his duties thereby causing disrepute or pecuniary losses to the organization. Instances can be many such as nepotism, sexual harassment, divulgence of trade/business secrets to competitors and the like. At times, there can be even innocent conflict of interests too. Therefore, employers should mention the possible conflicting interests of employees in the employment guidelines. The employees should at best keep themselves away from situations that would create conflict of interests or make disclosure to their management.

Preventive action in this regard can be creation of non-compete policy for the organization. Punitive action is removal of such employees from the organization.

From India, Salem
Varsha Chaudhary
What if company has taken apology letter from employee and then terminated the employee and asking for penalty amount for the same. What should that employee can do to get release from that penalty.
From India, Delhi
Dinesh Divekar

Dear Varsha,

Would you mind providing proper background information on what exactly happened? What was the type of misconduct, what was the designation of the employee, was the d0mestic enquiry conducted before awarding the information and so on. Please provide the information in chronological sequence. In fact, this is the basic expectation from the member who raises the post. Such posts could get deleted also, nevertheless, it was courtesy of senior members like Mr Umakanthan M who has given the reply, notwithstanding the inadequate information.

The "Conflict of Interest" is defined as, a situation in which the concerns or aims of two different parties are incompatible OR a situation in which a person is in a position to derive personal benefit from actions or decisions made in their official capacity. Please check whether the incident that has happened in your company fits within the definition. If not, then better not to do a further discussion on "conflict of interest" but as a matter of procedure of handling discipline.


Dinesh Divekar

From India, Bangalore

If the terminated in "Workman" under Industrial Disutes Act and the action of the management of termination of employee without conducting proper inquiry and punishment is disproportionate to the offence/ loss to the company, the workman can challenge the illegal dismissal before the Labour Authority under Industrial Disputes Act
From India, Pune

Dear Varsha Chaudhary,
You can sue in court, lodge FIR and initiate disciplinary action against having conflict of interest, as you consider best for the cause. At the same time you should have the clause of Conflicting Interest in the standing order or in employment policy.
The apology always means to forgive from the action but you want to terminate the person even after his apology, the same shall be considered contradictory. Therefore, you can call the employee for an explanation. Do not jump into conclusion with your own assumption rather follow the procedure prior to termination. Please avoid to use of certain phrases and words having different nomenclatures and which is not existing in your company policy with clear definition.

From India, Mumbai

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