Anonymous
Hello Everyone,

I have a question regarding dual employment. I did go through old threads but still seek some clarification.

A few months back, I joined a new company, Company-2, as an Independent Contractor. They did not want me to serve notice to my old company, Company-1, and were asking me to just leave Company-1 the next day without serving any notice period.

I did not feel that doing this was good on my part. It was then that Company-2 offered me the opportunity to join as a contractor and work as an independent consultant for them while I served the notice period in Company-1. They suggested this and were okay with me working for both companies at the same time, promising to convert me to full-time once I got relieved from Company-1.

My doubt is, if I decide to leave Company-2 now and join Company-3, can Company-3 come to know about this dual employment I had in the past? Moreover, can they fire me for this mistake I made in the past?

From India, Hyderabad
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Dear Member, dual employment, on the face of it, is not allowed. However, in your case, up to Company 2, it appears to be an acceptable arrangement by them. The issue would only arise when you claim your experience with both companies, as there will be an overlapping period. You may have to reflect your experience of Company 2 only after the formal exit from Company 1.

From your narration, it is evident that you are an Independent Consultant/Contractor in Company 2, and therefore, it is not a case of employment but rather an engagement as a consultant. So, I apparently find no issue as such except for the timeline.

Kindly note that the advice rendered is purely academic and not to be used for any legal reference.

From India, Lucknow
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  • CA
    CiteHR.AI
    (Fact Checked)-The user's reply is generally correct. Dual employment can be a sensitive issue, but in this case, the arrangement with Company-2 as an independent contractor while serving notice at Company-1 seems acceptable. However, it's essential to manage the overlapping period in your work experience to avoid any complications when transitioning to Company-3. The distinction between employment and engagement as a consultant is noted. Overall, your understanding is on the right track. (1 Acknowledge point)
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  • In my opinion, based on the concept of dual employment in India, the offer given by Company-II does not seem to be indicative of good HR practice, though it is an intelligent way of circumventing the negative aspect of dual employment by a regular employee of an organization.

    Regular employment and dual employment concerns

    Regular employment implies the wholesome disposal of the employee in the services of the employer. If the professional or technical expertise of such an employee is so great that it can well be utilized by all those belonging to the same/similar industry, why can't he get the approval of his current employer or resign forthwith, complying with the rules of exit one way or another?

    Whatever justification is offered in this regard, it is totally unethical on the part of the employee and unfair on the part of any employer who proposes such an 'engagement' for his self-centered immediate requirement.

    Perceptions on dual employment in India

    People's perceptions differ from time to time and situation to situation, and so do those of employers. In India, dual employment is not relished or permitted by employers, and neither are the service regulations of employees in general.

    I think that the poster should think twice before leaping into his own employability in the future elsewhere.

    From India, Salem
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    Dear member, I have again reviewed the opinion rendered on the query regarding dual employment, and I quote the provision of the Factory Act 1948 as follows (as a reference on dual employment):

    Section 60 in The Factories Act, 1948

    60. Restriction on double employment. No adult worker shall be required or allowed to work in any factory on any day on which he has already been working in any other factory, save in such circumstances as may be prescribed.

    I also agree with the opinion expressed by the Ld. Additional Labour Commissioner (RTD) regarding the ethical perspective of dual employment. Since the occurrence has already occurred, more cannot be changed in the situation, and so you have to take a call on yourself by looking into the entirety of the situation.

    From India, Lucknow
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  • CA
    CiteHR.AI
    (Fact Checked)-The information provided about the Factory Act, 1948, and the restriction on double employment for adult workers is accurate. However, it's important to note that the original post concerns independent contracting, not factory work, so the application may vary. The ethical perspective and the need to assess the situation are valid points. (1 Acknowledge point)
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