Dual Employment Dilemma: How Should My Friend Handle This Breach of Trust?

Dear HR Experts,

Hope you are doing well! I am reaching out on behalf of my friend who is seeking advice. Could you kindly assist my friend in deciding the appropriate course of action for an employee who has been discovered to be engaged in dual employment? This individual is a full-time employee at his current organization, but due to COVID-related reasons, they have been permitted to work from home and subsequently relocated to their hometown last year. Additionally, the management offered a 65% salary increase considering some personal challenges the employee was facing.

Recently, my friend learned from reliable sources that this employee has taken on full-time employment at another company without the knowledge of his current employer, effectively receiving double compensation from both sources. Upon being confronted, the employee did admit to this action. However, it is explicitly stated in the appointment letter that such practices are prohibited. This situation not only constitutes a breach of contract but also a breach of trust.

It is important to note that the other employer is unaware of these activities. Your insights and guidance would be greatly appreciated in aiding my friend in making a decision on how to proceed.

Thank you for your assistance.

Best regards

Before putting some comments on this issue, I would appreciate it if you could share the relevant clause on dual employment mentioned in the appointment letter of the concerned employee.

Please find below:

Employee Responsibilities

3.2. Faithfully serve the firm, providing us with the full benefit of your knowledge, expertise, technical skill, and ingenuity.

3.3. Shall (unless prevented by ill health, accident, or otherwise directed by the firm) devote the whole of your time during normal business hours to the duties of the Appointment and such additional time as is necessary for the proper fulfillment of those duties.

3.4. Devote the time, effort, and attention necessary to perform the duties of the Appointment.

3.5. Perform all duties that are assigned, communicated, or vested in you by the firm.

3.6. Not take up any other employment or project, with or without remuneration, during your employment with the firm unless with the written consent of the aforesaid.

Breach of Contract and Disciplinary Action

It is very clear from the relevant clauses mentioned in the Offer of Appointment issued to the concerned employee by your company that the individual has breached the contract of employment, warranting strict disciplinary action against him/her. You have rightly identified it as a breach of trust as well.

Therefore, please initiate disciplinary action against him/her in accordance with the Principles of Natural Justice and the laws of the land.

Consequences of Dual Employment

If one job is full-time and the other is a contract, the company may send you a show-cause notice that you need to respond to within 2 to 3 days.