Facing Dual Employment Trouble: How Should I Handle Legal Threats and Job Security?

Hi Sir, I'm working in X - IT company and got an offer from Y - IT company. At the last minute, my current (X) company asked me to withdraw my resignation with a higher amount, but I didn't receive the updated letter. I withdrew my resignation, but as a precaution, I also joined Y company and continued for 3 months. When I planned to resign from Y company, they discovered that I was still working in X company. As a result, they terminated me and are demanding 4 lakhs rupees, threatening to issue a legal notice to me and X company if I don't comply.

Y company did not mention anything about the dual employment issue in the offer letter.

Could you please help me? I don't have that much money. Do I need to pay the amount, or can I ask them to proceed with the legal option? I am keen on retaining my job in X company.

Regards, Employee

Legal Implications of Dual Employment

It was entirely wrong and illegal on your part to have worked in two organizations at the same time. Have you received Rs. 4 lakh as salary from organization Y? They cannot, at any rate, demand more than what they have paid you. Legally, they do not have a strong case to seek Rs. 4 lakh from you.

Offer Letter Clauses

In the offer of appointment of Y, is there any clause that you will devote your full time and energy to pursuing the business interests of Y? If there is no such clause, then it will help you further.

I received 4 lakh rupees for 3 months at Y company. Y company didn't mention anything about dual employment in the offer letter. I didn't misuse any data from either company.

Hi Sir, I'm working in X - IT company and received an offer from Y - IT company. At the last minute, my current (X) company asked me to withdraw my resignation with a higher offer, but I didn't receive the updated letter. I retracted my resignation, but as a precaution, I also joined Y company and continued for 3 months. When I decided to resign from Y company, they discovered that I was still employed at X company. Consequently, they terminated me and requested 4 lakhs rupees. They mentioned that they might issue a legal notice to both me and X company. I received the 4 lakhs rupees for the 3 months of work at Y company. Y company did not address the issue of dual employment in the offer letter. I did not misuse any data from either company.

Y company did not mention anything about dual employment in the offer letter.

Could you please help me? I do not have that much money. Do I have to pay the amount, or can I ask them to proceed with the legal option? I do not want to lose my job at X company.

Regards, Employee

Dear Krish,

Can't you think that it is not practically possible for a person to serve two employers simultaneously as a regular employee of both? Just because there is an absence of an explicit prohibitory clause on dual employment in the contract of employment with the Y company, can you assume that you can work with the X company? Then, won't it be a violation of the contract of employment with X, who has already given you a reasonable pay hike as a measure to retain your services with them? Don't you think it is unfair on your part to join the other company when you had already withdrawn your resignation after accepting the offer of a pay hike? There is no mention of whether you received a salary for the period of dual employment from X as well. It is said that a bird in the hand is worth two in the bush. Probably, you are going to lose both. Ethical values are more important than anything else in employment—whether it is an employer or an employee. Better patch up with Y to not precipitate the issue by means of negotiation for a lesser pay-back to save your employment with X.