Employee Working In An Organization As Confirmed Fulltime Employee But Is A Signing A

Dear All,

Can a fulltime / confirmed employee work in an organization and at the same time have some type of agency in his/ her name? This employee could be just a signing authority for this particular agency.

I am interested to know two things a) is it permitted? The appointment letter mentionsit clearly that employee should not engage in any other employment activity. In a way, employee is actually not working there but might be owner or signing authority b) Should the employee inform the management about owning the agency?

I really need inputs from all the H.R Seniors. Please suggest and guide!!

Request to kindly pour in all your inputs ASAP

Hi Shalini,
I accept that in most of appointment letters this clause exist that employee do not take any other employment or engaged any other activities bla bla bal...........
First we have to understand what is role of employee in organization. Companies are hiring employees skills and competance and not employee itself as bonded labour. He has got the right to do any business or profession if that does not conflict with his employer's business interest.
We should be reasonable in dealing with people. If your employee become signatory authority in his brother or relatives business or shareholder for the sake of income tax saving or so that should not be a problem for you.
You will find many such examples but people do not share with his employer because its none of employers business and you must appreciate him for his disclosure of such information to you.
Regards
Sawant

Mr. Sawant,

Thanks a lot for being kind enough to answer my query! Well, the employee hasn’t yet disclosed anything to the employer. Infact, the other colleagues have reported it. So at the first juncture, we have to gather information as to what exactly it is. If it is just for tax savings, that would be a real “okay” thing for us.

My organization is real quite caring as far employees are concerned. I just had a doubt as to where a line has to be drawn since we are too lenient in our dealings and at the same time it should not be that people develop a taken for granted approach. That’s the reason I wasn’t all my H.R friends and seniors to guide me.

Best Wishes,

Hi Shalini,
First, ask those other colleagues not to bother about someone else's life.
Second, an employee can have another business (most of them do too) as long as it does not raise any conflicts of interest with your orgn....as in, he cannot have a business similar to ur orgn or work (in any capacity) for your competitors.
Whether the employee has this other business for tax benefits or not is not your concern.

Dear Deepthi,
Thanks for your kind words! i would again stress that it was not known for what purpose this particular employee was engaged at second place or agency herein!!
It has to be known whether or not the interest of the organization is clashing or not!
Anyways,
Thanks again

yes i agree with deepthi, its not of organisations concern what the employee does, n what business he does. Just forget this and ignore it.

Hi,Well i have a different opinion all together, See if the person is owner of a firm his liability as owner are conflicting with the job that you are offering. If the person has not disclosed the information to you he might be making a big blunder of the interview session held with your company. It is not easy to give a person owner ship or signing authority of any firm. The appointment its self will have lot of leagal complications as he is a competent person of some other firm.Suresh

Hi,
I would suggest you to not to ignore it as that employee might be transfering data from your Organization for his personnel benefit.
First try to find out in what capacity he is engaged with the business , and take action accordingly.
If his business is related to the Organizations business then it becomes the matter of concern.

Dear
Generally an employer expects his employee to involve in the job fully. If he is either employed or involved in any private business, his concentration would be distracted. Hence, employee should not gainfully employed otherwise.
Since it is mentioned in the Appointment letter - which is supposed to be a contract between the employer and the employee - the details about agency business should be informed to the employer. Otherwise, the employer has every right to take action if he so wishes.
G.Sankaranarayanan [Login to view]

Hi,
@ Ravi- Thanks a lot for responding ,my dear friend! As all I have seen you is opposing all that H.R does. Please do not interpret it other way. I have really got no issues with is,it's your wish and to add to it you really might have had much such experiences!
Again hearty thanks to Mr. Suresh, Mr. Pranay and Mr. Sankaranarayan - I fully agree that the other side needs to be known first!When you work with an firm or organization , your first and foremost duty is to do justice to your job. And what's the harm if the employee just mentions or states his involvement with another agency. Incase, if it is not working against the company no one will bother to stop him or her! Even the person needs to understand this at the first juncture.
I'm really delighted to receive guidance from the H.R Circle! I will definitely post the development in this particular case-whatever happens.
Best Wishes to all,