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Hi, I am an IT Employee worked for two(A and B) companies at the same time as direct employees. I worked for 3 months in Company A from 16 Aug 2022 to 18 Nov 2022, Company A's settlement was completed. In Company B, I started working from 16 Aug 2022 to Dec 1, so Company B identified my dual employment with Company A, so they terminated me from the company and my Last working day is Dec 1st,2022.
They(Company B) paid only August and September month salary and failed to pay October and November Salary. I asked for the October month through the official company mail id, they said Auditing is going on and the salary for October will be credited along with November Month. So, on November 30th they emailed me regarding this Dual employment and terminated me on Dec 1st. So, my question is, they knew I was working for another company so they stopped my salary for two months and terminated me on Dec 1st they escaped me paying the salary for two months.

So, is there any chance to proceed legally ?

Thanks.
Asked 3 years ago in Labour

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9 Answers

issue legal notice to company to pay your salary for month of october and november 

 

2) if company fails to pay sue the company to recover your dues 

Ajay Sethi
Advocate, Mumbai
99764 Answers
8145 Consultations

You may file a complaint against Company B under the Payment of Wages Act, 1936 for failing to pay wages for two months.

You may also seek an appropriate remedy such as back wages, damages, or compensation from the employer.

you may file a complaint under the Minimum Wages Act, 1948 and the Equal Remuneration Act, 1976, if applicable.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Hello,

  1. Whether or not you have a chance to proceed legally  is largely dependent on the policy the company B had. If there was a clear clause in your employment contract/Appointment Letter stating that you could not engage in any other employment or a non-compete clause, then you cannot legally succeed.
  2. In the absence of any specifications about being employed by another company, you can get a legal notice issued to the company through a lawyer and seek the payment of arrears with interest.

S J Mathew
Advocate, Mumbai
3619 Answers
175 Consultations

company is entitled to termiante you as you have violated clause 13.1 of your appointment letter

Ajay Sethi
Advocate, Mumbai
99764 Answers
8145 Consultations

Hello,

  1. Clause No.13.1 quoted by you is the safeguard the Company has against dual employment and it clearly spells out : 

    "You shall not, directly or indirectly, engage or associate

    yourself with, be connected with, concerned, employed or engaged in any other business or

    activities or any other post or work part time or pursue any course of study whatsoever, without

    the prior permission of the Company."



    .2. However, the silver lining is that they have not stated anything to the effect that they can hold back your salary for the work you have performed

    .Therefore as they have terminated you, which is the penalty/action as you failed to comply by the conditions of employment. You can legally demand the arrears of payment for work performed. Need to issue appropriate Legal Notice to the Company.

S J Mathew
Advocate, Mumbai
3619 Answers
175 Consultations

They need to prove the same with evidence of the same else the said offences will not make out

Prashant Nayak
Advocate, Mumbai
34503 Answers
248 Consultations

If the employment letter does not forbid dual employment and there is no non-compete clause, an employee can engage in moonlighting.

Moonlighting essentially means the pursuit of a job carried out by an employee of a company after his regular office hours. 

Moonlighting can emerge from a hobby, or an interest and it can be monetised or can be pro bono. However, the employee has to declare to his company about the same and there should be no conflict of interest. Moreover, the external projects should not impact the productivity of the main employment. 

In the case of full-time employment, the employee is generally expected not to take up work for another employer, including while they are serving their notice period for their existing employer. However, in the absence of a specific legal prohibition, it is advisable to include such a restriction in the employment contract. Moonlight clauses are added to the employment agreement with the aim of ensuring efficiency and focus of employees at their current employment.

Therefore if your company rules restrict you from undertaking dual employment then on being detected the company may even sue you for this illegal act.

 

T Kalaiselvan
Advocate, Vellore
89966 Answers
2490 Consultations

The rules of your company very clearly state that you shall devote your whole time, attention and skill to the best of your ability for its business. You shall not, directly or indirectly, engage or associate yourself with, be connected with, concerned, employed or engaged in any other business or activities or any other post or work part time or pursue any course of study whatsoever, without the prior permission of the Company.

Therefore the termination order of your company is very much legally valid, and also you may not be entitled to claim salary for the remaining period.

 

T Kalaiselvan
Advocate, Vellore
89966 Answers
2490 Consultations

Dear client,  

If your employment contract with Company B allows for termination on the grounds of dual employment, and if you did not disclose your employment with Company A to Company B as required by your employment contract, then Company B may have grounds for terminating your employment. However, they are still obligated to pay you any outstanding salary owed for work you have already performed, regardless of the reason for termination.

If Company B has failed to pay your outstanding salary for October and November, you may have legal grounds to pursue a claim for unpaid wages. You can consider sending a legal notice to Company B demanding payment of your outstanding salary. If they fail to respond or refuse to pay, you may need to consider taking legal action to recover the unpaid wages.

You should consult with a labor lawyer who can advise you on your legal rights and the best course of action to recover your unpaid salary. They can also review your employment contract with Company B and advise you on any potential grounds for challenging your termination.

 

 

 

Anik Miu
Advocate, Bangalore
11010 Answers
125 Consultations

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