Dear All, Greetings!!! One of my Team HR Manager was resigned the job and started Manpower Supply (Contract Labor) in manufacturing companies. Now he got job in one of the reputed organisation and also he is doing the Contract Labor supply. Now he is trying to supply to his own company.

My Question is
1. Whether it is acceptable for two jobs at the same time.
2. If it is means can we call him HR Manager Cum Manpower Contract Owner.

From India, Bengaluru
Dear John,

The facts you stated may be true; but it appears to me that the answers to your questions cannot be simply given merely on the strength of the facts you presented only.

First and foremost, the erstwhile HR manager started the man power supply agency on his own only after resigning his previous job. It is his fundamental right and as such it is beyond the criticism of a third party like us.

Secondly, for whatever reasons best known to the new employer and to himself, he has resumed his job as a full time HR manager. It is not sure whether the employer has given him his consent to run the man power agency simultaneously without any condition or the person has formally transferred the ownership of the agency to some one like his wife, son or some other close relative subject to his informal control and supervision. If it is so, it cannot be termed as illegal. Even his present employer cannot raise the issue of dual employment against him under the above context.

Thirdly, if his attempt to push his de facto agency to supply labor to the company where he is working as a HR manager now has the tacit approval of the CEO of the same company for obvious reasons of economy, effective control and supervision etc., who are we to question it? Only a trade union of the affected workmen, if any can raise the issue in a conflict situation that too not very successfully for clandestine deals would always have the cloak of legality that cannot be pierced so easily.

Of course his adversaries may call him so as " HR manager cum Labor Supply Contractor ", so what?
After all, when the lust for money sets in, ethics takes to wings.

From India, Salem
Dear John,

As deeply explained by Umakanthan sir, there should be no objection in Point 1 & 2 (coz these are normal phases through which many of us have faced).

In r/o point No. 03, I would like to add:-

1. In which capacity you raised the query (beneficiary of company or well wisher of the HR Manager cum Labour supply Contractor or common person who just to know what could be the subsequent effects) or hiding yourself behind “Friend” Tag (my assumption).

2. You said “he is trying”, means yet it is not finalized. Since it is a reputed organisation, so there must be some pre-approval processes (which have multi-level validations / hierarchy) through which such contracts / jobs awarded. As per my opinion, even if he run the business in other names, such practices should be rejected on the first instance itself.

3. Under audit terms it is said “the approving authority should have no connection with the beneficiary (vendor)”. Here direct link with both. How come a person can be authorized to approve his own bills / cost / profit margins etc. etc… (HR Manager are generally involved in approving Labour supply bills/ cost)

4. If any how he able to get the job, it will not only difficult to control, but could lead to financial losses (increased cost) as well. May be he will show himself L1 (by reducing service charges or other factors), but later he can manipulate the costing and other factors as well (being HR Manager).

5. Sooner or later the Management will catch the gaps. In that situation he may loose both (the job and business as well). Moreover, it can affect his future career as well.

So as per my opinion it is not advisable to choose such horrible option.

Rest decision is with the “Reputed Organisation” and “HR Manager cum Labour supply Contractor”.

From India, Delhi
Person having his own agency of manpowwer services is the owner or proprietor.
He may take the contract and render the services and has to abide by the terms and conditions as per agreement and with in the frame work regulatory norms and applicable act.

Now that He is Also Working as employee in the managerial capacity.
First thing is about the policy of the company hirirng him - Does the policy allows such case?
Second - Company is also trying to hire his services under contract separately - Does the company policy allows this?

What is Legal implication or obligations- If the policy of the company allows all the above - then it is obligation of the coampany to ensure that legal implications are fulfilled and complied for the hired services. Here company can not authorise the same person in context to control and manage the contract. It needs auditing at all stages of services.
As regards to persons hiring and employment being done - here No authority can challenge his employment as long as the person is doing is due deligence and fulfill the obligations of his duties.

From India, Vadodara
I wish to add a litter to the above after going through the seniors comments or suggestions.
Running a manpower agency and providing manpower to a company where we are working normally not permitted. Even if done clandestinely it will result in conflict of interest. There could be a tacit approval from top management otherwise it it comes out the HR Manager will be in trouble. He may have to lot of issues in case of any issue, misconduct, violation etc., as he can not sit as judge for his own wrongdoings.
However, as seniors said, had he transferred ownership to others before joining he can be saved legally, but not morally. Any way lust for money will not allow to think the other ones.

From India, Hyderabad

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