Dual Employment Dilemma: Can You Work and Provide Contract Labor to the Same Company?

Dear seniors,

I would like clarification from all seniors regarding whether an employee can work for an organization and also provide contract labor to the same company. Is this considered dual employment or not?

Thank you.

First of all, is the employee raising the invoices against the contract labor? If yes, you will need to check if he is a proprietor/partner in that company. In most cases, I found that employees have mentioned their spouse's name as the proprietor. In that case, it is not dual employment.

If he is the 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 a "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 favor?

Was a fair system of seeking tenders floated by the company? A thin line separates this case from becoming a matter of influence.

Allowing an employee to be a contractor as well (whether directly or camouflaged) is not only unhealthy and unethical but also vitiates the work atmosphere. This is because the employee's focus would primarily be on their private interests, attempting to influence the contract-executing officials to improve their own prospects or to negotiate compromises regarding work requirements. Such a situation could lead to potential conflicts, as other employees may also seize this opportunity, inevitably resulting in clashes of interest.