Is It Legal to Manage HR for Multiple Companies? Seeking Advice on Interview Disclosure

Dear Seniors & Colleagues,

More than three years ago, I joined my present organization as Assistant Manager of HR & Admin. Initially, I was handling three companies, and two people were reporting to me. The total workforce was around 65+. After just one month, my reporting manager left, and my employer did not hire a replacement. Consequently, I had to start the HR & Admin Department from scratch. However, after three to four months, we were required to provide HR & Admin support to eight additional companies. These companies belong to the close relatives of our Directors, and their line of business is similar to ours. Together, they shared the cost of the HR & Admin department. The registered offices and/or corporate offices of these companies are different, and we only provide them with day-to-day HR & Admin support. Currently, we are managing a workforce of over 200 employees.

I am uncertain whether we should disclose this information during an interview. We do not engage in any illegal practices at any of the locations. As an HR professional, I am genuinely confused about the legality of our actions. Due to this uncertainty, we are prohibited from discussing this practice with outsiders, including during interviews.

Despite our diligent efforts, we are not receiving the level of recognition in larger organizations that we believe we deserve. While we oversee a workforce of over 200 employees on a daily basis, we are required to state during interviews that our workforce is around 65+.

Questions Regarding Legality and Interview Disclosure

I have the following questions:

1. Is this practice legal?
2. If it is legal, can we mention it during interviews?
3. Should we be truthful with interviewers?

I am reaching out for assistance on behalf of my team and would appreciate prompt advice.

Regards,
GreatWhite

Prashant ji has given a perfect answer. There is nothing wrong in stating that you are dealing with a 200+ workforce; it is a fact. You can mention that you are dealing with a 200+ workforce inclusive of associate companies.

Consider this as great exposure to handling a 200+ workforce. Upon joining the company, your reporting manager had left. You mentioned that you started from scratch. You are fortunate in that regard; very few people get this kind of opportunity.

Remember the Bhagavad Gita and continue with your Karma without faltering. God is with you.

Thank you for your response. However, my concern is regarding my interview on July 29th. I was honest about the fact that we manage HR and Admin matters for my parent company as well as 10 other companies. Although they did not inquire, I can provide the names of these associated companies. In the event of a background check where they question my Directors about these companies, they might only mention the parent company and not the others. What should I do in this situation? I cannot anticipate extensive cooperation from my Directors. I seek advice on the best course of action.

Warm Regards,
Mahua Biswas

Though the secret and informal assignment given by your employer to look after the HR matters of other companies additionally gives you great professional exposure and personal satisfaction, you have developed an opinion that it is a shoddy deal because of the secrecy enforced by him in this regard. That's why your mind wavers between legality and illegality in respect of the arrangement as well as exposing it to others.

Legality of the Arrangement

First and foremost, there is no illegality in such an arrangement. This is a ubiquitous practice followed by many private employers out of their economic or other interests in other companies and their faith in the abilities and sincerity of employees like you.

Disclosure During Interviews

Secondly, it cannot be construed as immoral or an act of breach of trust if you cite it orally as an additional credential in an interview for a better placement. I think your prospective employer, if he is more tactical and in dire need of a candidate of your ability and exposure, will conduct his background verification in such a manner not exposing you. So, don't worry.