Dear All,
Greetings!
One of my team HR managers has resigned from his job and started a business supplying contract labor to manufacturing companies. He has now secured a job in a reputed organization while still continuing with the contract labor supply business. Additionally, he is attempting to supply labor to his former company.
My questions are:
1. Is it acceptable to have two jobs simultaneously?
2. If so, can we refer to him as an HR Manager cum Manpower Contract Owner?
Thank you.
From India, Bengaluru
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Greetings!
One of my team HR managers has resigned from his job and started a business supplying contract labor to manufacturing companies. He has now secured a job in a reputed organization while still continuing with the contract labor supply business. Additionally, he is attempting to supply labor to his former company.
My questions are:
1. Is it acceptable to have two jobs simultaneously?
2. If so, can we refer to him as an HR Manager cum Manpower Contract Owner?
Thank you.
From India, Bengaluru
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Dear John,
The facts you stated may be true, but it appears to me that the answers to your questions cannot be simply given merely on the strength of the facts you presented only.
First and foremost, the erstwhile HR manager started the manpower supply agency on his own only after resigning from his previous job. It is his fundamental right, and as such, it is beyond the criticism of a third party like us.
Secondly, for whatever reasons best known to the new employer and to himself, he has resumed his job as a full-time HR manager. It is not certain whether the employer has given him consent to run the manpower agency simultaneously without any conditions or if the person has formally transferred the ownership of the agency to someone like his wife, son, or some other close relative, subject to his informal control and supervision. If it is so, it cannot be termed as illegal. Even his present employer cannot raise the issue of dual employment against him under the above context.
Thirdly, if his attempt to push his de facto agency to supply labor to the company where he is working as an HR manager now has the tacit approval of the CEO of the same company for obvious reasons of economy, effective control, and supervision, who are we to question it? Only a trade union of the affected workmen, if any, can raise the issue in a conflict situation, and even then, not very successfully, as clandestine deals would always have the cloak of legality that cannot be pierced so easily.
Of course, his adversaries may label him as "HR manager cum Labor Supply Contractor," so what? After all, when the lust for money sets in, ethics take to wings.
From India, Salem
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6185The facts you stated may be true, but it appears to me that the answers to your questions cannot be simply given merely on the strength of the facts you presented only.
First and foremost, the erstwhile HR manager started the manpower supply agency on his own only after resigning from his previous job. It is his fundamental right, and as such, it is beyond the criticism of a third party like us.
Secondly, for whatever reasons best known to the new employer and to himself, he has resumed his job as a full-time HR manager. It is not certain whether the employer has given him consent to run the manpower agency simultaneously without any conditions or if the person has formally transferred the ownership of the agency to someone like his wife, son, or some other close relative, subject to his informal control and supervision. If it is so, it cannot be termed as illegal. Even his present employer cannot raise the issue of dual employment against him under the above context.
Thirdly, if his attempt to push his de facto agency to supply labor to the company where he is working as an HR manager now has the tacit approval of the CEO of the same company for obvious reasons of economy, effective control, and supervision, who are we to question it? Only a trade union of the affected workmen, if any, can raise the issue in a conflict situation, and even then, not very successfully, as clandestine deals would always have the cloak of legality that cannot be pierced so easily.
Of course, his adversaries may label him as "HR manager cum Labor Supply Contractor," so what? After all, when the lust for money sets in, ethics take to wings.
From India, Salem
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Dear John,
As deeply explained by Umakanthan sir, there should be no objection in Point 1 & 2 (coz these are normal phases through which many of us have faced).
In r/o point No. 03, I would like to add:-
1. In which capacity you raised the query (beneficiary of company or well wisher of the HR Manager cum Labour supply Contractor or common person who just to know what could be the subsequent effects) or hiding yourself behind “Friend” Tag (my assumption).
2. You said “he is trying”, means yet it is not finalized. Since it is a reputed organisation, so there must be some pre-approval processes (which have multi-level validations / hierarchy) through which such contracts / jobs awarded. As per my opinion, even if he run the business in other names, such practices should be rejected on the first instance itself.
3. Under audit terms it is said “the approving authority should have no connection with the beneficiary (vendor)”. Here direct link with both. How come a person can be authorized to approve his own bills / cost / profit margins etc. etc… (HR Manager are generally involved in approving Labour supply bills/ cost)
4. If any how he able to get the job, it will not only difficult to control, but could lead to financial losses (increased cost) as well. May be he will show himself L1 (by reducing service charges or other factors), but later he can manipulate the costing and other factors as well (being HR Manager).
5. Sooner or later the Management will catch the gaps. In that situation he may loose both (the job and business as well). Moreover, it can affect his future career as well.
So as per my opinion it is not advisable to choose such horrible option.
Rest decision is with the “Reputed Organisation” and “HR Manager cum Labour supply Contractor”.
From India, Delhi
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As deeply explained by Umakanthan sir, there should be no objection in Point 1 & 2 (coz these are normal phases through which many of us have faced).
In r/o point No. 03, I would like to add:-
1. In which capacity you raised the query (beneficiary of company or well wisher of the HR Manager cum Labour supply Contractor or common person who just to know what could be the subsequent effects) or hiding yourself behind “Friend” Tag (my assumption).
2. You said “he is trying”, means yet it is not finalized. Since it is a reputed organisation, so there must be some pre-approval processes (which have multi-level validations / hierarchy) through which such contracts / jobs awarded. As per my opinion, even if he run the business in other names, such practices should be rejected on the first instance itself.
3. Under audit terms it is said “the approving authority should have no connection with the beneficiary (vendor)”. Here direct link with both. How come a person can be authorized to approve his own bills / cost / profit margins etc. etc… (HR Manager are generally involved in approving Labour supply bills/ cost)
4. If any how he able to get the job, it will not only difficult to control, but could lead to financial losses (increased cost) as well. May be he will show himself L1 (by reducing service charges or other factors), but later he can manipulate the costing and other factors as well (being HR Manager).
5. Sooner or later the Management will catch the gaps. In that situation he may loose both (the job and business as well). Moreover, it can affect his future career as well.
So as per my opinion it is not advisable to choose such horrible option.
Rest decision is with the “Reputed Organisation” and “HR Manager cum Labour supply Contractor”.
From India, Delhi
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Person having his own agency of manpower services is the owner or proprietor. He may take the contract and render the services and has to abide by the terms and conditions as per the agreement and within the framework of regulatory norms and applicable acts.
Now that he is also working as an employee in a managerial capacity. The first thing is about the policy of the company hiring him - Does the policy allow such a case? Secondly, the company is also trying to hire his services under a separate contract - Does the company policy allow this?
What are the legal implications or obligations? If the policy of the company allows all of the above, then it is the obligation of the company to ensure that legal implications are fulfilled and complied with for the hired services. Here, the company cannot authorize the same person in the context to control and manage the contract. It needs auditing at all stages of services. As regards to persons hiring and employment being done - here, no authority can challenge his employment as long as the person is doing his due diligence and fulfilling the obligations of his duties.
From India, Vadodara
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Now that he is also working as an employee in a managerial capacity. The first thing is about the policy of the company hiring him - Does the policy allow such a case? Secondly, the company is also trying to hire his services under a separate contract - Does the company policy allow this?
What are the legal implications or obligations? If the policy of the company allows all of the above, then it is the obligation of the company to ensure that legal implications are fulfilled and complied with for the hired services. Here, the company cannot authorize the same person in the context to control and manage the contract. It needs auditing at all stages of services. As regards to persons hiring and employment being done - here, no authority can challenge his employment as long as the person is doing his due diligence and fulfilling the obligations of his duties.
From India, Vadodara
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I wish to add a little to the above after going through the seniors' comments or suggestions.
Running a manpower agency and providing manpower to a company where we are working is normally not permitted. Even if done clandestinely, it will result in a conflict of interest. There could be tacit approval from top management; otherwise, if it comes out, the HR Manager will be in trouble. He may have a lot of issues in case of any issue, misconduct, violation, etc., as he cannot sit as a judge for his own wrongdoings.
However, as seniors said, had he transferred ownership to others before joining, he can be saved legally, but not morally. Anyway, lust for money will not allow one to think of others.
From India, Hyderabad
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Running a manpower agency and providing manpower to a company where we are working is normally not permitted. Even if done clandestinely, it will result in a conflict of interest. There could be tacit approval from top management; otherwise, if it comes out, the HR Manager will be in trouble. He may have a lot of issues in case of any issue, misconduct, violation, etc., as he cannot sit as a judge for his own wrongdoings.
However, as seniors said, had he transferred ownership to others before joining, he can be saved legally, but not morally. Anyway, lust for money will not allow one to think of others.
From India, Hyderabad
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