muneer.ahmad
Respected Members _ Greetings of the day,
Please advise regarding dual employment, and impact to company in legal prospective!

In detailed: Employee last working day is 15th Feb (Old company) but employee joined the new company on 10th of Feb (New company). (5days early)

What is the impact to new company? (If the old company came to know about early joining ),
Is this any possibility to take legal action against new company?

What type of legal action can take against employee ? Is this any provision under labour law.

From India, Bangalore
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Umakanthan53
Labour Law & Hr Consultant
Saswatabanerjee
Partner - Risk Management
KK!HR
Management Consultancy

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KK!HR
1317

If both the companies are factories as per Factories Act 1948, as per Section 60 thereof , there is restriction on double employment. The provision is extracted below:

60. Restriction on double employment.—No adult worker shall be required or allowed to work in
any factory on any day on which he has already been working in any other factory, save in such
circumstances as may be prescribed.
Additionally if the employee is covered as per EPF Act 1952, then the new employer will not be in a position to add the employee from day one of employment. In case the PF Inspector spots the anomaly, then there will be a lot of questions to be answered

From India, Mumbai
saswatabanerjee
2289

KK, the OP asked what is the legal impact I am also curious about the answer to it.
From India, Mumbai
KK!HR
1317

The old employer can complaint to the Association of industries regarding unhealthy practice by the new employer. If there is a breach of trust by the employee (by retaining the earlier company hardware, or utilising the knowledge gained in the previous company against them) or any other serious misconduct then the previous employer can initiate criminal action against the employee and drag in the new employer as an accomplice in this process. I have heard of some such case
From India, Mumbai
saswatabanerjee
2289

so it will be a civil case, which is basically a waste of time unless the employee was a high ranking executive or had business secrets. Is there a statutory liability ? The association of industry has zero powers.
From India, Mumbai
umakanthan53
5884

Employment is always at will only. If an employee wants to leave his present employer and join another, it is his freedom of choice. However, his such voluntary exit should not violate the terms of unilateral exit clause already covered by his contract of employment with the existing employer. Every ideal employee is expected to exercise his freedom without causing any inconveniences to his current employer by scrupulously observing the rules of exit. The employer should also be courteous enough to accept the offer of buy out of notice period in case of reasonably urgent resignation. Unfortunately most employers are not prepared to accept the buy out offer of an exiting employee and try to harass such employees in all possible ways in order to pull down attrition rate.
On the other hand, if the prospective recruiter/employer is a strict follower of ideal HR practices, he will give sufficient joining time commensurate with the length of the notice period of the existing job.
Unfortunately, in employment matters no one prefers to be ideal but try to handle the situations with expediency only.
If we dispassionately analyse the actual cases of dual employment in real life scenario, we will find in reality there will be no dual employment but frequent job-hopping or ruthless poaching giving rise to presumptive dual employment in the eye of law only.
Under the above narrated circumstances, terminating the services of the exiting employee on the charge of abscondence or initiating civil suit against the prospective employer will not serve any purpose as all the three try to act with their own hidden agenda.

From India, Salem

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