Freelancing employees

Ask the Community HR
1

Hi,

What are the legal rules related to employees freelancing in India?
Can they freelance while working for an organization?

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2

Hi Sandeep,

There is no explicit legal framework about an employee doing freelance work in addition to his/her employment.

As a general practice, the employers through the letter of appointment/employment contract include a clause preventing the employee from multiple employment. This is practiced with the purpose of having such employees perform wholesome for the employer.

Taking up freelance jobs while employed in an organization without the knowledge of the employer may attract a breach of the employment contract.

As a healthy practice, employees who intend to take up freelancing jobs or multiple employments, discuss it with the employer and proceed with it subject to certain mutual terms, viz.,

  1. employee not to take up any multiple employment with a similar line of business/competitors;

  2. employee not to indulge in freelance job assignments in the course of employed hours;

  3. employee’s freelance jobs not to create any impediments to the present employment/establishment, etc.

Depending upon the nature of employment and the kind of freelance works, the terms may vary to protect the interests of both parties.

Hope the above helps.

Regards,
Bhuvana Anand

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3

This depends on the company policies.
Thank you.

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