Employee doing conflicting side business
Hemal Chheda
(Querist) 02 October 2018
This query is : Resolved
Hi. We have a employee doing conflicting side business while being under our employment. He started a company dealing in the same products as ours while still drawing salary form us for a full year. This action of his has caused considerable damage to us. While there is no explicit clause in his appointment letter prohibiting him from indulging in any other business, I want to explore if we can sue this person for fraud / cheating or other grounds.
Guest
(Expert) 02 October 2018
Seems to a hypothetical query. Otherwise, your HR Division should have been fully competent to tackle the issue, even as a routine matter.
However, if a real problem, it is a commercial query of a company, which can afford to hire services of some expert to sort out your problem
Secondly, even if a bit of truth is there in your description, you can do nothing, except to take lesson from your mistake of not including the relevant clause in his appointment letter. Unlike others, I won't advise you to issue any legal notice or to file a case against your employee, except that you have the need to tone up your administrative and managerial capabilities to tackle with any such internal problem arising out of employment.
Better take personal consultation from some expert in service laws, as well as having a sound experience in HR practices. Charity service is not meant for the financially affording companies.
Dr J C Vashista
(Expert) 03 October 2018
I endorse and appreciate expert analyses, opinion and advise of Mr. PS Dhingra.
Why are you retaining such employee ? Show him / her exit door.
No criminal or civil proceedings can be initiated in the circumstances explained by you, even if there is some truth in the query.
DR.VEDULA GOPINATH
(Expert) 03 October 2018
dear queriest
Implied conditions of employment calls for non-competing and loyalty to the employer from the employee.Thus you You can take legal against employees who are involved in involving nefarious interests which are against the interests of the employer. Please also show me the employment contract. We can send cease and desist notice to such employees and if the situation continues we can terminate such employees after giving reasonable opp opportunity cs dr vedula gopinath senior lawyer and arbitrator vgnath@gmail.com..
