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Arun Kumar (Consultant)     23 April 2011

Dual Employment

 

The situation I would like advice from you is about the possibility of Dual Employment. I work for a BPO company and recently was offered another position in another company. I find that I can work in both companies as the hours of employment do not coincide. I have a lot of familial debt obligations that force me to attempt this. Would this be legally acceptable to my present company and suitor company?



My appointment letter from my present company mentions:

            While employed by the company you:
                     
                     1.Will not engage in any external activities of a commercial nature.
                     2. Will not engage in activity of a non commercial nature without prior written                             approval of the company

Is employment regarded as activity of commercial nature? I check the definition of commercial nature and found the definition to be:

Relations of commercial nature include, but are not limited to the following transactions: any trade transaction for the supply or exchange of goods or services; distribution agreement; commercial representation or agency, factoring, leasing; construction of works; consulting; engineering; licensing; investment; financing; banking; insurance; explitation agreement or concession; joint venture and other forms of industrial or business operation; carriage of goods or passenfers by air, sea, rail or road.


However as the relationship between employer and employee is defined as principal-agent, is this covered by the term "commercial representation or agency" in the definition?

In the suitor company, there is a clause but it limits itself to competitors, which is not the case here as they are in different sectors.

I would really appreciate your advice in this matter.




Learning

 9 Replies

Om Prakash Dhusia (HR assistant)     23 April 2011

Mr. Arun Kumar, the simplest answer to your question is if you are employed with any company, you can not engage yourself in another employment on record and if get attention of either company, you would have to face the music.

If you are a registered consultant and running your own Consultancy firm then you are free to run your business with any number of clients but not if you are employed with some company.

Arun Kumar (Consultant)     23 April 2011

I would like to see things in the legal light here. Interpretation of the law is what is important. 

Om Prakash Dhusia (HR assistant)     23 April 2011

You still need clarification? The answer is  big NO in legal perspective but dont ask me any citation from the court because you are not going to fight it out in the court to claim your illegal and un-fundamental right to Dual Employment despite commiting an un-ethical practice.

Arun Kumar (Consultant)     23 April 2011

A tax consultant I know tells me that it is not illegal to work in two companies at the same time. I have been researching this topic as I have to accept or reject the offer of the second company soon and I have found that there is no Law that defines the topic putting onus on the employee and it is more a grey area. Contractual terms are what is deemed most important. So I am looking to interpret my Contract terms

 

Thank you for your response. Much appreciated!

Kumar Doab (FIN)     23 April 2011

While in employment of one company you should not get employed with another company. All employers shall draft text of employment contracts and if required bring interpretations to suit them, to deter the employee from any gainful activity and activities that shall consume his/her time attention.

You wish to improve your earnings due to debt liabilities.

You may explore the possibilities/opportunities like MLM, which should be in the name of your family and hence not in your name.

You may stay away from shares, equities etc.

Om Prakash Dhusia (HR assistant)     23 April 2011

Dear Arun Kumar , first of all thanks for encouraging me and I appreciate your tempo to earn extra to overcome your liabilities but the truth is that these so-called consultants(Pls dont feel offended because you are also the one) are only interested about their consultation fee and are in the know how of exigencies and negligency of their customers, so they give their opinion according to the requirement of the client and for every legal and illegal action they never say NO. If you consult a criminal lawyer for 323 IPC, they would atonce suggest you to have committed 302 IPC and they would have proved you innocent but at the end they will not be able to defend you even in 323 IPC.

Please use your wits and follow the case, yourself, by not fully submissive to your lawyer.Keep all the records straight, be present on hearing dates or if unable to attend the court, submit an application to the court through your lawyer or friends, ask for the records by paying the requisite fee to the court and ask for the receipt of fee from your lawyer, get his signature on Vakalatnama and keep a copy of it with you, and if ever you found him wandering, remind him and if he fails to adhere, replace him immediately  and report the matter to the Bar.

Ofcourse it would not be that easy but surrendering to the mobs is cowardice. You would be humiliated, insulted, thrashed,intimidated, I mean every worst action from them but dont lose heart as every thing is fare in love and war and thogh for a short stint they may be mighty but atleast if you have the nerve and straight, you are going to win but be positive.

My idea to show you the real picture was not to discourage you but apprise you the hard reality. Not everybody is bad in this profession but the problem is that in order to earn more and more, they try to grab as much clients as possible and at last they would not have time to follow-up any case sincerely and the end result, the client has to suffer and also not every member wearing a white bow and black coat is an real lawyer because there are many who are capable of only submitting affidavits,fetching caste certificate, arm license,succession certificate and would have never faced a single day's proceedings in the court throughout their life.

Dont think every black robed individual is at par with Mr. Jethmalani.Everyone has weakness and these lawyers are no examplery or ideal but when limit is crossed you have to remind them.Please remember these are Indian lawyers having no sympathy with the common lay man and they are neither social workers unlike developed nations.

You are educated and would have been following this column vigorously, may I ask you, has any lawyer fraternity ever suggested solution to your problem so far and even if any one from that community replies, it would be one or two liner and if you ask further you would never receive any reply.Scrutinise it yourself and see the outcome.

I have full sympathy with you, be a fighter and forget about winning.Do the best and forget the rest.See I have become a preacher, and I am sorry for being so.

Regards.

Sanjay Thombare (Labour Officer)     24 April 2011

Labour Laws in india  does not allow for dual employment.  Reason may what so ever. 

Alvin (Manager)     03 December 2013

Hi,

 

I am working for  BPO and also would like to become an IRDA resisterd/approved, insurance agent.

Would that be considered as dual employement ?

Alvin

Kumar Doab (FIN)     03 December 2013

The insurance company that has approached you to become Insurance Agent/FPA is interested to recruit you as it can not sell its products of insurance without III passed, licensed by  IRDA agents.

The ultimate aim is to exploit the immediate primary circle of the agent as ap.

 

The candidate that is interested to become insurance agent has to be sponsored by an insurance company to appear for exam conducted by III. The candidate has to complete   a fixed hour training online/offline and has to pass in the exam.

Thereafter a license shall be issued that is to be renewed each of 3 years.

 

The agent can switch the insurance company.

After 5 years of uninterrupted agency the commissions of past policies can not be stopped.

 

 

Initially you too would be approaching all of your relatives, near and dear ones to sell insurance products of your company and achieve the targets. Yes you shall be given targets. There would be allurements by various schemes.

 

The III curriculum that you shall study would educate that an agent should fetch 12 policies and PC of Rs.75000/pa.

 

Due to mass scale of mis selling, pressure selling and poor performance of ULIP the faith of public is shaken.

 

LIC due to various benefits it offers to its agents e.g; gratuity, loan etc and also due to proven performance of its traditional policies (not ULIP) has retained the trust.

 

You can also avail dual license for  life and non life insurance.

The agent is not full time employee but a part time canvasser of insurance company.

 

The insurance agent post its profession/business as ’Self Employed’.

However the answer to your basic question is ‘Yes’ your employer may view it as another source of gainful enterprise and may not permit it.

 

You shall need to provide your pan card to insurance company and it shall be subjecting income to TDS, and shall Form16 and you shall need to club the income for your ITR

 

If you are sure that your employer shall not view this venture kindly you may obtain license for your spouse, parent, and family member and support them. Usually a clause to this effect is inserted in appointment letter.

It is advisable to obtain clarification from your employer in writing.

Although there are many those who pursue as part time agency of LIC, Amway, MLM etc...................

 

If possible avoid private liefe and non life insurance companies and avoid ULIP of any company.

 

Finally it is your call.

 

 

 

 

 


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