Can Professionals Like Doctors or Engineers Legally Own a Business in Their Field?

Hi,

I am confused, please help. Can a person practicing a profession, such as a doctor, HR professional, engineer, or any other, also own a business in the same field? Is this legal or illegal?

Deepali

Sorry, Deepali, but I just don't understand what you mean - please specify.

Kind regards, Randi

Hi Deepali,

When an employee, whether a doctor, engineer, or any other professional, is hired, it is clearly mentioned in his appointment letter that "You will not work elsewhere, with or without remuneration unless the management gives you in writing that the employee can work elsewhere." However, the management never provides in writing that you can work elsewhere during your free hours, i.e., after working hours, etc., so it is ILLEGAL.

Hope the above answer satisfies you. If you have a different opinion, please let me know.

Santosh Iyer
Email: santosh_iyer79@rediffmail.com

Hi Santosh,

I agree with you. But what action can be taken against a person who is doing so? Isn't he/she setting a wrong example for other professionals.

Deepali

Hi,

You can, of course, take him to court, but my experience with the Indian legal system is not that positive. I would, in your case, make a warning letter and call the employee for a meeting where you discuss the situation. If the employee decides to keep on having another job, you could decide to let him go. There is, of course, also the possibility that you allow him to have another job in his free time.

Hi Randi,

If he/she is senior to me and a major participant in office politics, if he has good political connections as well, what should we do in that case? Should we just sit and observe what is going on? If he bluntly says, "Yes, I do," then what should be our course of action?

Deepali

Hi Deepali,

If he is senior and you feel intimidated, you could escalate the matter up the hierarchy. Inform the upper management, and if you fear he might discover it was you and react negatively, ensure you inform management anonymously.

I can see you are in a dilemma. I would say that if I were in your position, I wouldn't mind as long as the person is performing their job. However, as both you and I are part of HR, it's challenging for you to possess this knowledge. I would suggest letting the individual know that such actions go against company policy and that it is your responsibility to report such incidents to management. Provide him with the benefit of the doubt and present three options:

1. Stop engaging in another job.
2. Stop disclosing this information to me.
3. Or I will escalate the issue to upper management.

Hi!

There was a case before the Supreme Court; I don't remember the citation. But in that case, the S.C held that one cannot pursue two professions simultaneously. In the given case, one doctor was practicing law (apart from running a clinic). He was debarred from the bar practice. The doctor approached the courts. The S.C held he can't practice two professions at a time. If he wants to practice as a lawyer (with a law degree), he has to give up the doctor's profession. Moreover, he can't do justice to both professions.

Some professionals won't practice or be in their respective fields. It is individual discretion. If a lawyer doesn't want to practice and pursue some other salaried job, he has to give up his membership of the Bar.

There are certain rules that are to be followed by professionals framed by respective professional bodies.

Thanking You

Yours
Kumar
malkangiri_r@hotmail.com

Life is not ifs and buts.
Do the majority of doctors employed in government hospitals also practice in their own hospitals? The answer is YES. They do.
Do all our film stars, politicians, and sports persons work in more than one profession? The answer is YES. They do.
Do we nominate business tycoons, movie actors, and players in our Parliament? The answer is YES. We do.
What is the profession of Naveen Jindal, an MP from Haryana? He is a businessman and also in politics.
Apart from being a cricketer, Anil Kumble is also a sports and IT consultant.
The list is long.
It is not wrong. It is not illegal.
Yes, if you are using your professional corporate contacts for your personal benefits, if you are using the clients of your company for the benefits of your own business, then it is unethical but not illegal.
Think about it.
Regards,
Sanjeev Sharma

Hi!

I agree with you. But there are certain professions which require a high degree of commitment. A doctor cannot practice law. Both require professional competence.

Thanking You

Yours Sincerely

Hi Kumar,

I agree with you, but there are certain professions which require a high degree of commitment. A doctor cannot practice law as both require professional competence.

Thank you.
Yours sincerely,
Deepali

Hi Sanjeev,

What you have mentioned is about two professions. Please reread my question. My question is, can anybody who is in a job as an HR manager or any HR-related role run their own HR consultancy (consultancy in any form such as recruitment, policy, or HR suggestions related to HR)? As per my knowledge, this is 100% illegal. What do you say?

Deepali

Life is not about ifs and buts. Do the majority of doctors employed in government hospitals also practice in their own hospitals? The answer is YES, they do. Do all our film stars, politicians, and sports persons work in more than one profession? The answer is YES, they do. Do we nominate business tycoons, movie actors, and players in Parliament? The answer is YES, we do.

What is the profession of Naveen Jindal, an MP from Haryana? He is a businessman and also in politics. Apart from being a cricketer, Anil Kumble is also a sports and IT consultant. The list goes on. It is not wrong; it is not illegal. Yes, if you are using your professional, corporate contacts for your personal benefits; if you are using the clients of your company for the benefits of your own business, then it is unethical but not illegal. Think about it.

Regards,
Sanjeev Sharma

Hi Sanjeev,

What you have mentioned is about two professions. Please read my question again. My question is: can anybody who is working as an HR manager or in any HR position run their own HR consultancy (providing services related to recruitment, policies, HR suggestions, etc.)?

As per my knowledge, this is 100% illegal. What do you say?

Deepali

In this case, you can talk to your boss/senior (of HR), and he will directly intervene in this matter. Don't directly speak to the person because he/she can harm you and take revenge in the future.

Best wishes,
Manish

Hi Manish,

I totally agree with you, but what if he publicly shows this thing and the higher management doesn't want to quote anything? Do you think that we should let these things happen so that the growth path for juniors will become more difficult?

Deepali

Hi,

On one side, we talk about taking corrective action against unemployment in India. On the other side, people like him/her are in senior positions, contributing to the unemployment issue by engaging in both a job and a business in the same profession. What can be done to address this? Can't we all initiate a revolution against this practice in the industry? Don't you think it is a significant hurdle to our growth?

Deepali

Deepali,

Frankly speaking, many of the employees are actually either employed or self-employed even after normal working hours.

For example, a software engineer may sell his software and help others install software prepared by him after normal working hours. Similarly, a worker receiving low wages may choose to operate a small grocery, departmental, or stationary shop, etc.

In reality, there may not be much that can be done about this situation. However, one approach we can take is to ensure that the organizational work is not affected by an employee's personal activities. Employees should be clearly instructed that for their personal benefits, they should not:

- Take unnecessary leaves
- Change their shift timings
- Engage in discussions or communications with others during normal working hours
- Make personal phone calls during normal working hours

As HR professionals, we should strive to address such issues by understanding the challenges faced by employees. By handling such problems sensitively, I believe we can foster a harmonious work environment.

Santosh Iyer
santosh_iyer79@rediffmail.com

Doctors can work in a hospital and can also practice in their own hospital. This is very common. A judge can also practice law and can be a lawyer in some cases.

As per Company Law, one person can be a Director in 20 different companies. Again, as per Company Law, one person can be the Managing Director of at most two different companies. These and many more are cases of people in the same profession. :D

Coming to normal Management, and as Deepali quoted, in the HR profession. As I mentioned earlier, if the person is using the clients of the company to get more business for their own company - like if a Recruitment Head is supplying manpower to the company from their own consultancy - then in that case, if proven, it is unethical and illegal.

If I have a training company and I am supplying my trainers to the company I work with or to the clients of the company I work for, then it is unethical and illegal.

Think it over. Think logically.

Regards,
Sanjeev Sharma

Hi,

I cannot see the issue seriously. In my home country, it is very normal for people to have another job in their free time, often in the same profession. Of course, it is not right if you use your company position or information from your company in the other position.

The job market is not a zero-sum game. By this, I mean there is not a specific amount of jobs. Your employee could create work for other people through his work outside the office.

What I believe the problem here is that this goes against your company policy, and no, you cannot ignore that. Of course, if your management doesn't care, I would suggest to them that your company either legalize it or grant him the right to do so. Anything else would be hypocritical.

I simply do not agree with you that you should not inform the person, as he might retaliate against you. If the management also supports him on this, I would stay quiet. However, if not, this person should know that by you telling him this, it could save him from some serious problems!

Kind regards,

Randi

Kindly check the Company Act, 1956 and then comment and share your views. For your information, I am also a qualified Company Secretary from ICSI.

Regards,

Sanjeev Sharma

Hi,

Deepali, I also agree with you, but we don't practice changing the situation just because we fear. We need a job, and we don't want to lose it. Things are not in our hands because we fear losing our job. But, even if you overcome this fear, you may not implement the change when management is involved. So, losing your job and still not implementing the change renders the bold decision useless. The same thing is happening in our country, but we tend to shift our votes from one party to another because we feel powerless due to fear. We continue like this, unable to take any action.

I think you should concentrate on your job and work towards making your future better. This is not your ultimate goal; you have to aim for the peak.

Regards and best of luck,

Manish

P.S.: And don't involve yourself in this situation. I am not saying this because you are a girl, but you should be aware that the other person can harm you due to their prestige.

I agree with Sanjeev - this is the reality, and we need to use our common sense and see it in the whole picture. If we are talking about misuse, then we have a problem, but if I, in my free time, work for an NGO, I would be allowed to do that without my company interfering.

Kind regards,
Randi

Hi! I agree with Sanjeev. The Company Law does not contain such a provision. The professionals are governed by professional bodies, and rules are framed under, whereas employees hired under a contract are governed by their respective employment agreements (with regards to double employment). Everyone is breaking rules. Who is going to regulate?

Thank you. Yours sincerely, Kumar

Hi,

My question remains: if a person is working two jobs in the same profession, doesn't it contribute to the rise in unemployment?

Deepali

Hi Deepali,

No, I do not believe it is like that! As stated earlier, I do not believe it is a zero-sum game. There is not only a fixed amount of jobs, but it is evolving all the time. If a person is doing two jobs, it could be that he is creating more jobs for others as well.

This situation reminds me of the discussion in my home country about outsourcing - shifting some of your work to India will take away work from European employees. The reality has shown that more work has actually come because of outsourcing, benefiting both Europe and India. Of course, this is a topic that will always be discussed, but I do not believe that by having two jobs, a person is taking away a job from another person in the bigger picture.

Hi Deepali,

Actually, in those days, most of the companies or institutions were run by the government, so the rule stated that double employment is prohibited. Even now, in the public sector, double employment is prohibited. However, this rule is also being followed in the private sector to create job opportunities for the unemployed. Nowadays, people do not seem to care about these regulations and often practice double employment privately. Even companies are not concerned about this issue. Strict adherence to this rule is mainly observed in the government sector.

According to the law, it is not permissible, but individuals may engage in double employment without the knowledge of their employer.

Regards, Umesh.S.

Hi Deepali,

My question is still there: if a person is doing a dual job in the same profession, isn't it contributing to the rise in unemployment?

Deepali, you are showing your frustration and ignorance. Just give three good reasons. How do you feel that a person doing a dual job in the same profession is leading to unemployment? Have good reasoning. Be logical. Just because you want to prove one point to someone doesn't mean that it is correct. It's all about multitasking. Don't you think that one person is doing more than one job because he or she is capable of doing that? He or she is working for more than 10 hours. He or she is more talented than many others.

Education and age are not proof that someone is learned. Just like "copy-pasting an endless number of articles or materials is not proof that someone is knowledgeable and intelligent." So, keep sharing, keep growing, and keep learning all the time.

Regards,
Sanjeev Sharma

Hi Sumi,

Thanks for the information. I am not wrong; it is not as per law.

Deepali

Like CAs, CSs, CWAs, Lawyers, Doctors, IASs... are Management Professionals governed by any law?

Is there any Certification or Law that governs HR Professionals? I don't know why you are trying to show your ignorance? :D

Deepali, you are showing your frustration and ignorance. Just give three good reasons on how you feel that a person doing a Dual Job in the same profession is giving rise to Unemployment.

Have good reasoning. Be Logical. :D

Just because you want to prove one point to someone doesn't mean that it is correct.

It's all about multi-tasking. Don't you think that one person is doing more than one job because he or she is capable of doing that? He or she is working for more than 10 hours. He or she is more talented than many others.

Education and age are not proof that someone is learned. Just like "Copy-Pasting N number of articles or Material is not proof that someone is knowledgeable and intelligent :D. So, keep sharing, keep GROWING, and keep LEARNING all the time.

Regards,

Sanjeev Sharma

Okay, I believe we should keep the tone. This is not about being logical; this is about different opinions. This is not about the need for growth if you do not agree with another person on CiteHR. This is a forum where we talk about HR issues, ask for help, and seek opinions. We don't need to agree, and we don't need to lecture each other.

Hi,

It depends on the terms and conditions mentioned in the employment agreement or his contract for service, if any.

Regards,
Raj Kumar Rai

The answer is easy - the professional is breaching his or her contract and is guilty of maintaining a conflict of interest unless the organization gives written permission for them to undertake external work. What to do about it is even harder! Maybe the Chief Executive and Senior Managers of the organization should start making appointments with the doctor in his private practice and then walking past their office/desk at work. (I'm being a bit facetious, but being open about the breach is a good starting point!)

Progress Enterprise

Hi Deepali

Your first Post Posted: Fri Feb 09, 2007 11:29 am

[/quote]“Hii,

I am confused, please help.

Can a person being into a profession e.g doctor or HR or engineer or any other have the same profession's business?

Is this legal or illegal?

Deepali”“Hi Sanjeev,

What you have mentioned is about two professions. Do read my question again. My question is can anybody who is doing a job of HR manager or any HR job can run his own HR consultancy(a consultancy in any terms like recruitments or policy or HR suggestions anything related to HR).

As per my knowledge this is 100% illegal.

What do you say???????

Deepali”“Hi,

On one side we talk about taking corrective action agiant unemployment in India?

And on the other side people like him/her being into senior positions giving a raise to unemployment by doing a job and a business of same profession.

What can be done for this?

Can't we all bring a revolution against it in the industry?

Don't u think it is a big hurdle in our growth?

Deepali”“Hi,

My question is still there, if a person is doing dual job in same profession isn't it giving a raise to unemployment.

Deepali”

You change the your basic question –

Can a person being into a profession e.g doctor or HR or engineer or any other have the same profession's business?

and know you say that if a person is doing dual job in same profession isn't it giving a raise to unemployment. [quote]

Hi Deepali

Are we not here to discuss the basic question which you raised ?

i.e., Can a person being into a profession e.g doctor or HR or engineer or any other have the same profession's business?

Answer is YES a person can have both and it is legal and ethical. The only point is you can not do it for your own gain when you worked for any organisation and you favour your business for your own gain without any permission or approval. if you take permission its legal and ethical otherwise not.

Sanjeev is right.

thanks and regards

Arun K Mishra

Hi Arun,

Thank you for the comments. However, who will be responsible for ensuring that the person is not using his professional contacts for personal gain?

Deepali

Hi Arun,

Thanks for the comments, but who will keep a check on whether the person is not using his professional contacts for personal benefits?

Deepali

There is also a possibility that the person is getting business for the company where he is working through his personal contacts. How can you keep a check on that?

Regards,
Sanjeev Sharma

Actually, a person has to have all the legal compliances to start a business. If he files tax returns with both incomes, he can go ahead with such a venture.

Dear (Whatever is your name)
Don't be anonymous and do care to share your name. Members on CiteHR, like to know your name. :D
Thanks for the advice and suggestions.
The purpose of CiteHR is to discuss about HR related issues and the challenges that HR Professionals are facing at workplace. Now, who is considered as HR Professional is a debatable issue. To be qualified as a HR Professional one should either have Academic Qualification or one should be working in the capacity of a HR Professional in HR Department of an Organization. Graduates working as Marketing Executives or Administration (Including Housekeeping; Security or Maintaining Travel Desk in a Company) are not considered as HR Professionals.
If required, we can have debate on this.
Regards
Sanjeev Sharma
(Blog: http://sanjeevhimachali.blogspot.com/)
Or ( <link outdated-removed> )

My name is Lewis Strattn. I am quite happy for my identiy to be known..
I agree with you about the purpose of CiteHr. I will give a fuller reply to your post when I have more time. All the best.