Navigating Dual Employment: How to Handle Contract Breach and Privacy Concerns?

Hi All,

I am working in an IT company, A, for 3 years, and I have received an onsite opportunity for the UK in my company. For the visa and onboarding process, I had 5-6 months free, so I began looking for part-time opportunities to earn some extra money. I was selected by a small company, B, for contract employment. They were impressed and offered me a full-time position. Without much thought, I started working there while waiting for the processes to be completed at my current company, A.

Due to Covid and other issues, the UK project at company A was cancelled, which led me to resign from both company A and company B. I wanted to explore new opportunities and make a fresh start.

Breach of Employment Contract

Company B questioned my resignation after only 3 months and seemed upset when they discovered I had two active PF accounts. They have raised a concern about a breach of the exclusive employment contract, which prohibits employees from working full-time or part-time elsewhere during their free time.

Legal Advice and Privacy Concerns

I sought advice from a lawyer friend who mentioned that in the case of a contract breach, the companies could potentially release me early without notice period pay, as there was no document forgery or misinformation provided regarding any company.

I am also concerned about the sharing of personal information by companies. It appears to be a privacy breach as I did not provide any written consent for my information to be shared.

Seeking Guidance

I would like to understand what actions can be taken in this situation and how to proceed. Additionally, I am curious about the extent to which companies can share personal information about employees without explicit consent.

Also, I asked my CA, and he said having two active PF accounts under one UAN is legal. Many doctors work in both government and private hospitals and do that as well. Additionally, dual employment is not illegal in India.

Dual Employment and Legal Implications

1. Dual employment is illegal in India.

2. Your contract specifically prevents you from working elsewhere, so you are in breach of the contract too.

3. In order to get a second PF number, you lied and falsified your application, so that is also illegal, and you are liable to prosecution and penalty.

4. Both companies are correct in sending you a showcase and may also file a civil suit against you. Company A is also fully within their right to ask for the return of salary and benefits given to you during the time you worked elsewhere.

You need to change your CA, by the way, if this is the kind of advice he is giving you.