Conflict –
An Example – Scenario, in which employer has right to Terminate an employee.
1, If a employee hire in a project or company in which there are different type of positions/title employees working.
And one position (consider Senior accountant) new position open and its only knows to internal employee and the position is to hire through subcontract labor broker.
Thus an internal employee release this information to his known person and asking money to hire him on new open position (Senior Accountant), and even inform him to go so and so broker.
So this is consider as conflict and the employee in this case needs to terminate.
If your case similar then you have right to fire mention employee.
Or if employee has different type of business not related to your company then he should do his own business after duty hours, if not then he should leave the company.
Thanks.
From Kuwait, Hawalli
80An Example – Scenario, in which employer has right to Terminate an employee.
1, If a employee hire in a project or company in which there are different type of positions/title employees working.
And one position (consider Senior accountant) new position open and its only knows to internal employee and the position is to hire through subcontract labor broker.
Thus an internal employee release this information to his known person and asking money to hire him on new open position (Senior Accountant), and even inform him to go so and so broker.
So this is consider as conflict and the employee in this case needs to terminate.
If your case similar then you have right to fire mention employee.
Or if employee has different type of business not related to your company then he should do his own business after duty hours, if not then he should leave the company.
Thanks.
From Kuwait, Hawalli
Hi Kaye,
We cant stop a person in running his own firm while he is working but we can restrict those person in such a way that it should not affect the business where he is employed with. Here are my suggestions on the restrictions..
1) While giving the Appointment Letter you can add a Non Compete clause which acts as a hurdle in doing this kind of business
2) While creating the HR policy you can add a policy which covers that the employee should not use any of their resource without the acknowledgement from the Management
3) If the Management found him guilty( provided if they have valid proof) then he will be terminated immediately with no inquiry or investigation
These are my opinion in case if I am wrong somewhere, please educate me. Have a great day..
From India, Tiruchchirappalli
We cant stop a person in running his own firm while he is working but we can restrict those person in such a way that it should not affect the business where he is employed with. Here are my suggestions on the restrictions..
1) While giving the Appointment Letter you can add a Non Compete clause which acts as a hurdle in doing this kind of business
2) While creating the HR policy you can add a policy which covers that the employee should not use any of their resource without the acknowledgement from the Management
3) If the Management found him guilty( provided if they have valid proof) then he will be terminated immediately with no inquiry or investigation
These are my opinion in case if I am wrong somewhere, please educate me. Have a great day..
From India, Tiruchchirappalli
100% Agreed with the view of Madhu T.K. If you do not have any clause in letter of appointment re leave him. But for future put clause in ur organization letter of appointment regarding this,
Regards
Anish
From India, Jaipur
Regards
Anish
From India, Jaipur
I agree with Jenny. If the business conflicts with the interest of the company & if there is a clause restraining employees and also notice period required, you can definitely hold on to the resignation letter citing the reasons to the emploee. Concurrently you can issue a showcause notice on the violation of rules followed by disciplinary proceedings. Such acts will be a warning to all employees.
From India, Bangalore
From India, Bangalore
Dear all,
While getting a permanent employment, the terms and conditions of the employment [normal cases] clearly states that the employee should not engage in any other employment either directly or indirectly. But in Kaya's case, I do not know whether this is the case. In the appointment letter if the employee has agreed to all the conditions and signed (saying that he will not engage in other employment, may be his own) then he is liable for legal actions by the employer.
All depends on the employment agreement between the employer and employee.
Hi 'folks,
Even though the company is paying for the time (may be 8 hrs of work), this is not an excuse that the employee can engage himself in some other business (which may sometime conflict his employment with the company). In some of the government hospitals, doctors have their clinics inaddition to the working in the govt hospitals. But this is not acceptable, as the motive for earning (discharging duties as govt doctor) will hamper his functioning at the govt hospitals. But this subject to debates,etc
From India, Mumbai
While getting a permanent employment, the terms and conditions of the employment [normal cases] clearly states that the employee should not engage in any other employment either directly or indirectly. But in Kaya's case, I do not know whether this is the case. In the appointment letter if the employee has agreed to all the conditions and signed (saying that he will not engage in other employment, may be his own) then he is liable for legal actions by the employer.
All depends on the employment agreement between the employer and employee.
Hi 'folks,
Even though the company is paying for the time (may be 8 hrs of work), this is not an excuse that the employee can engage himself in some other business (which may sometime conflict his employment with the company). In some of the government hospitals, doctors have their clinics inaddition to the working in the govt hospitals. But this is not acceptable, as the motive for earning (discharging duties as govt doctor) will hamper his functioning at the govt hospitals. But this subject to debates,etc
From India, Mumbai
Dear Kaye,
If you have proof of doing other work that conflicts with company business, charge sheet him and send him a letter to clear the charges. Hold his due till the clarification comes from his side and add new clause in appointment letters of double employment, running individual business. You can also write ethical code for the employee's which will be applicable to every one.
With Regards
Sachin Gupta
From India, Srinagar
If you have proof of doing other work that conflicts with company business, charge sheet him and send him a letter to clear the charges. Hold his due till the clarification comes from his side and add new clause in appointment letters of double employment, running individual business. You can also write ethical code for the employee's which will be applicable to every one.
With Regards
Sachin Gupta
From India, Srinagar
Generally if there is a provision in the terms of employment that an employee shall not engage in any other avocation, management can take action. However, even if there is no such clause, and if an employee runs a Business which is competing with the employer, then the Management has a got a right to terminate quoting conflict of interest.
In this specific case, you have mentioned that the employee has given his papers. Then where is the question of termination.This is not the case of misconduct where even after resigantion, you can charge cheet and if proved guilty, dismiss the employee. This happens in misappropriation cases. Please note that no misconduct was committed in this case and is a contravention of contract. He chose to terminate the contract by giving his papers and the matter ends there.
If you can prove that he has diverted customers/orders/ etc, then, initiate civil action against him
Thanks
T Sivasankaran
From India, Chennai
In this specific case, you have mentioned that the employee has given his papers. Then where is the question of termination.This is not the case of misconduct where even after resigantion, you can charge cheet and if proved guilty, dismiss the employee. This happens in misappropriation cases. Please note that no misconduct was committed in this case and is a contravention of contract. He chose to terminate the contract by giving his papers and the matter ends there.
If you can prove that he has diverted customers/orders/ etc, then, initiate civil action against him
Thanks
T Sivasankaran
From India, Chennai
If you were aware that he was running his own business, before employing him. you should have done the reference check... to avoid such situations.
Its better you do not hold his benefits and release him.
Regards
Veena Kangralkar
From United Arab Emirates, Dubai
Its better you do not hold his benefits and release him.
Regards
Veena Kangralkar
From United Arab Emirates, Dubai
1) chk if any clause is mentioned in appt. letter about not doing any other work apart from ur company's. usually it should be there.
if it is there, then you can terminate him for violating the rules. provided u have enough good and valid proof of him doing so. although he has resigned, chk if the resignation is accepted. if not, then lengthen the acceptance process from ur management end stating reasons that u have found out about his business and state the proofs. if he just leaves without completing his notice period, u can anyways deduct his salary
2) chk wat wer the reasons for him to do some side business which affects ur company.. was any of ur company data disclosed ?
3) many wud say that if the employee has resigned, y terminate him... but this can be the case with another employee doing the same thing. all will start thinking that i run my business and anyways if the company finds out, i still have my business to hold on to. ur company will be taken for granted then.
4) you can certainly take action if your company has been affected bcz he has the same kind of business. no clause/no statement is required to show this.
From India, Mumbai
if it is there, then you can terminate him for violating the rules. provided u have enough good and valid proof of him doing so. although he has resigned, chk if the resignation is accepted. if not, then lengthen the acceptance process from ur management end stating reasons that u have found out about his business and state the proofs. if he just leaves without completing his notice period, u can anyways deduct his salary
2) chk wat wer the reasons for him to do some side business which affects ur company.. was any of ur company data disclosed ?
3) many wud say that if the employee has resigned, y terminate him... but this can be the case with another employee doing the same thing. all will start thinking that i run my business and anyways if the company finds out, i still have my business to hold on to. ur company will be taken for granted then.
4) you can certainly take action if your company has been affected bcz he has the same kind of business. no clause/no statement is required to show this.
From India, Mumbai
Hello HR Professionals i went to all coments,
Let me put one fact in front of you and would welcome suitable coments in the form of solutions.
IF yourare aware of financial services industry wherin its strictly been mentioned that an employee cannot do any other business which will affect the business of the company he is employed with...However of 100% employees employed in financial services industry around 90% have their own business of same industry which they operate it during their office hours aswell... This is seriously wrong but finaly employees of this industry has focused more on Customer Service hence they are bound to sell products as per the requirement of customer..hence by default they have to set up their own business which will for sure affect the business of the company he is employed with
From India, Thana
Let me put one fact in front of you and would welcome suitable coments in the form of solutions.
IF yourare aware of financial services industry wherin its strictly been mentioned that an employee cannot do any other business which will affect the business of the company he is employed with...However of 100% employees employed in financial services industry around 90% have their own business of same industry which they operate it during their office hours aswell... This is seriously wrong but finaly employees of this industry has focused more on Customer Service hence they are bound to sell products as per the requirement of customer..hence by default they have to set up their own business which will for sure affect the business of the company he is employed with
From India, Thana
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