I recently found out that an employee is running his own business which conflicts with our company's operations. As HR, I had inquired about this during his hiring process, and he had verbally denied it. However, I now have evidence to the contrary, but he has cunningly submitted his resignation before we could take any action.
How can I hold him accountable for his actions? As HR, I am also reluctant to settle his outstanding payments. Is there a way to address this situation?
Kaye

From India, Mumbai
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If he is running his own business, you are getting jealous. If possible, you too should run your own business, which you can't, I guess, being in HR. So, just relieve him and clear his dues. As an HR professional, you should never hold someone's dues and do wrong.
From India, Madras
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If you had any idea about the candidate's profile of owning a business of his own, you should not have given him employment. If required, you should have included a clause in the appointment order stating that he should not engage in any profitable business while employed. Typically, an establishment with certified standing orders will have a provision for this. Now, since he has resigned, let him go. You cannot withhold his salary and other benefits unless there is a specific clause permitting you to do so as mentioned above. This is because the salary is remuneration due to him for the work he has done, and withholding it may lead to issues. Therefore, settle with him.

Dear kravi,

This platform is for HR professionals. If you wish to contribute helpful information, you are welcome to do so. However, when making comments, please remember to maintain common courtesy. This is not a place for humorous remarks.

Regards,

Madhu.T.K

From India, Kannur
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Even though he has handed in his papers, you are still entitled to conduct an investigation. You will need to commence this as soon as possible, preferably today. It is actually important that employers do this because it helps prevent the employee from continuing this behavior with another employer. If your investigation finds he has contravened his employment contract/agreement with you, you may take action as if he is still employed. This may alter what you tell future employers if he wants a reference check, etc.
From New Zealand, Auckland
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You could change your employment contract to include the condition that employees cannot run a business of their own whilst in your employ. Now that could well be overly restrictive as some people may run small part-time home-based businesses which do not conflict with their "day" job. Something that you need to think through very carefully.
From Australia, Melbourne
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A discontented employee is like a bomb. Be careful. There is a beautiful proverb in Hindi - "Even God is scared of naked ones." Do whatever you want to do with that employee but ensure your action is devoid of ego and within the four corners of the law.
From India, Pune
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All respected professionals, I think Mr. Kravi is right because running one's own business after duty time is not a crime. Employers pay employees only for 8 hours, not for 24 hours. So, in the remaining 16 hours, employees have the liberty to engage in any legal work for their benefit.

Dear Madhu T.K., you are wrong, I think. You need to suggest good thoughts to Mr. Kaye87, not Mr. Kravi.

Pardeep Sharma

From India, Mumbai
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Dear all,

It's a nice thought by Mr. Pardeep Sharma. Running one's own business is not wrong if it is not in the same industry or with a competitor. Of course, the company is paying a salary for the employee's time, not to him. Outside of company time, we can't restrict him.

Sridharan. A

From India, Thiruvananthapuram
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Dear All,

Mr. Kaya clearly mentions that the employee is running their own business, which conflicts with the company's operations. This raises concerns about acceptability. For instance, if the employee works at Big Star Hotel and also owns a small restaurant, there could be a potential conflict leading to business losses for the company. Therefore, it is recommended to terminate the employee and settle their dues.

Best regards,
Starren

From India, Madras
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Hi,

There is nothing wrong with an employee running their own business as long as they have declared it and received permission from the employer. It is also okay if the employee's business does not hamper their productivity at the employer's workplace. The employee's business must also not conflict with the employer's business.

Precious

From South Africa, Bloemfontein
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