How to Draft an Undertaking Letter for a New Hire Still Listed as Director Elsewhere?

Hi all, We have employed a candidate who was a director in his previous company. He mentioned that the company is not currently operational, but he has not officially resigned as the director. Consequently, he has not submitted any relieving documents. As per my director's instruction, I need to get an undertaking signed by him stating that he is not working or associated with his previous company and regarding confidentiality. I need a format for this undertaking as I am unable to frame it. Can anyone help me with this?

Thanks in advance,

Afsha

Hi, A person can be a director in one company and an employee in another company. There is no provision in the Companies Act that prohibits this.

Confidentiality Undertaking

You may request a formal written undertaking regarding confidentiality, stating that the individual will devote all productive time to your company on a full-time basis and will not take up any other assignments on a part-time basis.

Dear Afsha,

I have a different viewpoint altogether.

A candidate worked as a Director. Now the company is in a dormant state, and we do not know if it may cease to exist also. Still, why does the candidate wish to stick with this company? Why does he not resign from the company formally and join your company? What is the logic behind not dissociating?

Secondly, your company authorities have instructed you to take an undertaking from him. In that case, he should come to this forum and request a draft of it. Why do you wish to do his job? Why do you want to spoon-feed the candidate?

Thanks,

Dinesh Divekar

Dear Afsha,

I am appending a draft generated through AI. You may amend it to suit your requirements. This includes NDA also.

[Your Name]
[Your Address]
[City, State, ZIP Code]
[Email Removed For Privacy Reasons]
[Phone Number Removed For Privacy-Reasons]
[Date]
[Employer's Name]
[Company/Organization Name]
[Address]
[City, State, ZIP Code]

Dear [Employer's Name],

Subject: Undertaking Not to Take on Dual Employment

I, [Candidate's Full Name], hereby provide this undertaking to confirm that I will not engage in dual employment while employed at [Company/Organization Name]. I understand the importance of dedicating my full attention, time, and efforts to my role at [Company/Organization Name] and ensuring that there are no conflicts of interest arising from my employment.

By signing this undertaking, I agree to the following:

1. I will not take on any other full-time, part-time, temporary, or contractual employment during my tenure at [Company/Organization Name]. This includes any freelance, consulting, or independent work that could potentially interfere with my duties and responsibilities at [Company/Organization Name].

2. I will not engage in any activity or work that could compete with the business interests of [Company/Organization Name] or present a conflict of interest with my role within the organization. If I am unsure about the potential conflict of interest, I will promptly inform the relevant authorities within the company for clarification.

3. I will prioritize the confidentiality and proprietary information of [Company/Organization Name]. I will not disclose or use any sensitive information for personal gain or the benefit of any other organization or individual during or after my employment with [Company/Organization Name].

4. In case I have any existing commitments or obligations, I will disclose them to the HR department or the relevant authorities within [Company/Organization Name] before accepting this offer of employment. If such commitments are deemed to create a conflict with my role at [Company/Organization Name], I will take necessary steps to resolve them before my employment start date.

5. I understand that any violation of this undertaking may lead to disciplinary action, including possible termination of my employment with [Company/Organization Name].

This undertaking shall remain in effect for the duration of my employment at [Company/Organization Name], unless otherwise agreed upon in writing by both parties.

I hereby acknowledge that I have read and understood the terms of this undertaking, and I willingly and voluntarily agree to abide by them.

Signature: _______________________________
Date: _______________________

Printed Name: ___________________________

Thank you for your understanding and consideration. I am excited to join [Company/Organization Name] and contribute my skills and dedication to the team.

Sincerely