How Should We Handle Employees Starting Their Own Business While Working Full-Time?

Hi all, Query: If some employees start their own business while continuing their previous job, what action can we take against those employees as a company? (Employees are freshers and full-time.) Although it is clearly mentioned in the HR policy that an employee cannot take on another job while working for the company. It is an IT company. Employees acquire knowledge from the company and later decide to use that knowledge to start their own business, which goes against company norms. Kindly provide your valuable suggestions.

Employees can start their own business. This is not against company norms, but it should not be a dual employment or a competing business with their previous company.

See, this is not a question of what you have mentioned in the HR policy; it's a matter of the policy an employee has signed at the time of joining. Is this written in their appointment letter or the nature of employment that they can't start their own business? If this is the case, you can take action under the code-of-conduct norms.

Regards

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Best Regards,

As an HR professional, it is your responsibility to ensure that every policy of your organization is followed in the proper manner. If your policy clearly states that employees should not engage in any other employment or business apart from their current job, you must take appropriate action according to your company's norms.

Review the Appointment Letter

Please review your Appointment Letter to verify if this condition is included in the format. If it is present, you have the right to take action, as the employee has already agreed to those terms and conditions.

Furthermore, if you delay taking the necessary action in a timely manner, you may be held responsible in the future for the same.

Thank you.