in case a employee start the new business same industries at presently which industry he is employee but he did not resign his present job. is it right ? according Govt act
From India, Chennai
Acknowledge(0)
Amend(0)
From India, Chennai
Acknowledge(0)Amend(0)
Leaving aside any government acts, this is really a question of morality: loyalty (to the hand that feeds you), breach of confidentiality, and conflict of interest. The employee has a moral duty to give 100% to the employer and not engage in activities that would harm the employer, for that the employee is paid. Loyalty is the least an employer can expect, and for that, the employee is rewarded; it is called wage/salary.
By starting their own business in the same industry, the employee is in breach of their confidentiality clause, for which they can be fired without compensation. Indeed, if the employer goes to court, the employer can be awarded compensation against the employee. Finally, there is the issue of a conflict of interest: the amount of work that is being diverted into the employee's own business at the cost of the employer. This is criminal; it is called stealing. The employee can face imprisonment.
I hope the employee gives some thought to the above and then further considers:
The employer has risked his own money and resources to initially set up the business, then given the employee the opportunity to better themselves by engaging in productive work and learning about the industry and all the contacts. While I am all for people bettering themselves, at least the employee can do is resign and then start their own business. That way, the employee will carry their own risk and engage in a level playing field. The only thing the employee takes away is the knowledge they have gained, and that is allowed. I hope this employee has the moral courage to do this.
Finally, how would the employee feel if one of his own staff did the same thing to him once he has established his business? I really hope the employee will consider the above, particularly as the saying goes: "What goes around, comes around."
Regards,
Harsh
From United Kingdom, Barrow
Acknowledge(3)
Amend(0)
370By starting their own business in the same industry, the employee is in breach of their confidentiality clause, for which they can be fired without compensation. Indeed, if the employer goes to court, the employer can be awarded compensation against the employee. Finally, there is the issue of a conflict of interest: the amount of work that is being diverted into the employee's own business at the cost of the employer. This is criminal; it is called stealing. The employee can face imprisonment.
I hope the employee gives some thought to the above and then further considers:
The employer has risked his own money and resources to initially set up the business, then given the employee the opportunity to better themselves by engaging in productive work and learning about the industry and all the contacts. While I am all for people bettering themselves, at least the employee can do is resign and then start their own business. That way, the employee will carry their own risk and engage in a level playing field. The only thing the employee takes away is the knowledge they have gained, and that is allowed. I hope this employee has the moral courage to do this.
Finally, how would the employee feel if one of his own staff did the same thing to him once he has established his business? I really hope the employee will consider the above, particularly as the saying goes: "What goes around, comes around."
Regards,
Harsh
From United Kingdom, Barrow
Acknowledge(3)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
CONFIDENTIALITY - Employer-Employ ee.docx