Can employee do job in XXX company and provide contract labor to same company?

Dear senior,
I want clarification form you all senior that Can employee do job in a organization and can provide contract labor to same company? Is it dual employment or not?

first of all, is the employee raising the invoices against the contract labour. if yes, you will need to check if he is a proprietor/partner in that company. in most cases, I found that employee has mentioned their spouse name as the proprietor. in that case, it is not dual employment.

Dear sir,
He is proprietor then can do it.

If he is proprietor, then it is a clear cut case of "conflict of interest" and the contract should not be awarded to him (or his firm).
Even if his spouse is the "registered" owner, I would consider it as "conflict of interest" and avoid the firm.
Learned members may please comment.

What is the designation of the employee?
Is he senior enough to influence decision making in his favour?
Was a fair system of seeking tenders floated by company?
A thin line separates this case from becoming a matter of influence.

Allowing an employee to be contractor too (whether direct or camouflaged) is not only unhealthy and unethical but also vitiates the work atmosphere. Because all the time the employee's concern would be his private interest and tries to influence the contract executing officials for bettering his prospects or making compromises regarding work requirements. It could lead to potential conflict situations as other employees also exploit such opportunity and clash of interest is inevitable.

KKHR,
You have a valid point.