Can employee run business along with being an employee of organization?

Ask the Community HR
1

Hi,

Can an employee own and occasionally run their business along with being an employee of any organisation?

What does the rules permit and what are the restrictions?

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2

Any contract signed with the employer will be the only obstruction.
Thank you.

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3

Most organizations discourage this (remember the MLM business in the '90s) as this could affect the focus of the employees, spoil harmony in the organization, and also lead to conflicts with in office. The employees are in an organization with a set objective and the employer is paying for that only. So at the cost of the organization, getting into any other business is not ethical I guess. Observed that most organizations mention this in the appointment order, code of conduct, and policies.

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4

Most organisations don’t allow this considering the focus, employees have to provide regarding performance and other initiatives. This is well explained during induction in the company and documented

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5

Hi Jyoti,

There is no explicit rule as such, however, considering the aspect of the employer-employee agreement, nature of work profile, and accountability, dual employment as a general industry practice is prohibited by the employer through the employment agreement/letter of appointment.

It is between the employer and employee to agree upon the terms relating to dual employment.

The employee ideally should inform the employer about the intention of dual employment/business to the employer.

The employer if finds such requests acceptable can lay down the required reasonable terms and restrictions to agree upon an employee’s employment elsewhere or an occasional business.

Through an open and clear discussion, both parties can protect their interests.

Regards,
Bhuvana Anand

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