An Employee Is Running His Own Business Without Informing The Organization

I recently found out that an employee is running his own business which conflicts with ur company's business. As HR, I had asked him about this while employing him and he had verbally denied it. Now, I have some proof but he has smartly put in his papers before we could terminate him. How can I take him to task and as HR, I am not in favour to clear his dues too. Is that possible?
Kaye

if he is running own business you are getting jealous if possible you too run your own business which you cant i guess being in HR. so just relive him and clear his dues as a HR you should never hold someones dues and do wrong .

If you had any idea about the candidate's profile of having owing a business of his own, you should not have given him an employment. If required, you should have included a clause in the appointment order to the effect that he should not do any business of profit while in employment. Normally, an establishment having a certified standing orders will have a provision to this effect. Now, since he has put his papers, leave him. You can not hold his salary and other benefits unless you have a specific clause to do so as described above. This is because, the salary is a remuneration due to him which is payable in consideration for the work you have extracted from the employee and by holding it you may be inviting troubles. Therefore, settle him.

Dear kravi,

This is a website of HR professionals and if you want to contribute anything that may help others, you can contribute; but while posting comments please ensure that a common courtesy is maintained. Please remember that this is not a site for commenting funny things.

Regards,

Madhu.T.K

Even though he has handed in his papers, you are still entitled to conduct an investigation. You will need to commence this as soon as possible, preferably today. It is actually important that employers do this, because it helps prevent the employee continuing this behaviour with another employer. If your investigation finds he has contravened his employment contract/agreement with you, you may take action as if he is still employed, and this may alter what you tell future employers if he wants a reference check etc.

You could change your employment contract to include the condition that employees cannot run a business of their own whilst in your employ.
Now that could well be over restrictive as some people may run small part time home based businesses which do not conflict with their "day" job.
Something that you need to think through very carefully.

A discontented employee is like a BOMB. Be careful. There is a beautiful proverb in HINDI.... "Even GOD is scared of NAKED ONES" Do whatever you want to do with that employee but ensure your action is devoid of EGO and within four corners of LAW.

All respected professionals i think mr. Kravi is right because running own business after duty time is not crime. Because employer paying employee only for 8 hours not for 24 hours so in rest 16 hours employee have liberty to do any (legal) work for his benefit
dear madhu t.k. U r wrong i think. You have need to suggest good thought to mr kaye87 not mr. Kravi
pardeep sharma

Dear all
Its a nice thought by mr.pardeep sharma. running own business is not wrong if it is not a same industry/ competitor... of course company giving salary for the employee's time not to him.. out of the company time, we can't restrict him..
Sridharan.A

Dear All.
Mr.Kaya is clearly mention that the employee is doing own business which is conflicts with company's business. Then how it will be a acceptable thing. For example if the employee is working in Big Star hotel and owning a business of Small restaurant. it may be chance of business loss to the company. So just terminate him and settle his dues.
Starren

Hi,
There is nothing wrong with the employee running his own business as long as they have declared and received permission from the employer. It is also ok if the employees' business does not hamper their productivity at the employer's work place. The employees' business must also not conflict with the employer's business.
Precious