Dual Employment and Sudden Resignation: Can I Legally Enforce a Penalty Clause?

One of my employees had dual employment for a week, and now he has resigned from his job without notice. Can I ask for a penalty of 5 lakh for breaching the agreement? In the agreement, there is a clause against "Dual employment." Or can I ask only for quitting without notice?

Thank you.

Dual employment can be said that, in case an employee is working with another organization while also being on the payroll of another company, not as a consultant for either company.

As you mentioned, he has left the organization and joined another one. So, logically, it can't be considered dual employment. In this case, you may try to seek compensation for the lack of notice or shortfall in notice as per the signed agreement from him. However, on the other side of this situation, if he has not been officially relieved (in writing) from the company, then he still maintains a relationship with the company as an employee and employer. For legal matters, it is advisable to confirm with an advocate or legal adviser.

- If "Dual Employment" is considered an offense under your company rules, initiate disciplinary action and do not settle his dues.

- If the agreement includes a clause regarding compensation, then file a suit for the recovery of money; otherwise, you cannot.