Dual Employment in India: Legal Considerations
Under employment law in India, there is no specific provision that addresses the legality of dual employment. Section 60 of the Factories Act, 1948, discusses the restriction on double employment for individuals working in factories. This provision states that no adult worker is allowed to work in a factory if they are already employed in another factory.
The law, however, is not applicable to all institutions, as not every organization falls within the definition of a factory under the Factories Act, 1948. Organizations not covered by the Factories Act must specify stipulations related to double employment through a dual employment clause in the appointment letter, employee agreement, or offer letter. The employment agreement must state any restrictions on double employment and that the employee is prohibited from engaging in additional employment or professions while under their current employer's services. This means that an employee cannot take up dual jobs.
State-wise Shop and Establishment Acts
In addition, various state-wise Shop and Establishment Acts applicable to establishments not covered by the Factories Act lay down provisions regarding dual employment in the same institution. For instance, the Delhi Shops and Establishment Act states that an employee cannot work in an establishment or factory beyond their lawful employment period.
Double Employment under Shops and Establishment Laws
The meaning of double employment under Shops and Establishment employment laws in India differs as they regulate the working of an employee in the same establishment after working hours. However, both the Factories Act and Shops and Establishment laws can be applied to prevent employees from taking up double jobs.
Industrial Employment (Standing Orders) Central Rules, 1946
Section 8 under Schedule I-B of the Industrial Employment (Standing Orders) Central Rules, 1946, states that a workman cannot work against the interest of an industrial establishment by taking dual employment in addition to their existing job. Different Indian courts have also held that termination of employment rules in India, which state that termination of an employee who has taken up double employment is valid, as having dual jobs affects the efficiency and productivity of the employee, who fails to provide 100% effort to their job.
Judicial Precedents on Dual Employment
The Punjab and Haryana High Court in 2016 held that terminating the employment of a driver engaged in double employment was completely valid. Similarly, in 2012, the Madras High Court held the termination of a Grade III operator to be valid when he was found to be employed as a director of another company. The courts must consider every aspect of dual employment individually to decide the validity of employee termination policy on such grounds.
Consequences of Dual Employment
The punishment for dual employment in India has not been specifically stated in Indian law. Through various judicial pronouncements, it can be concluded that the consequence of dual employment in India is the termination of the employee having dual jobs.