Dual Employment in India

Dual Employment

Dual Employment’ or ‘Double Employment’ means holding two employments at the same time or we may also express it as “when an employee holds a full-time position and payroll with one employer and takes on an additional employment with another employer
Consequences Of Dual Employment:
1.     The efficiency of the employee will go down because he may be too tired by handling two jobs at a time.
2.     The second job may interfere with the first job or first with the second.
3.     There may be chances of breach of confidentiality.
4.     There may be conflict of interest.
5.     Various issues as Fatigue, poor attentiveness etc may arise.
Dual Employment under various laws in India:

1.      Section 60 in The Factories Act, 1948
60. Restriction on double employment.—No adult worker shall be required or allowed to work in any factory on any day on which he has already been working in any other factory, save in such circumstances as may be prescribed. (Annexure-A)

2.     Section 65 The Bombay Shops & Establishments Act, 1961
Sec 65: Restriction of double employment on a holiday or during leave
No employee shall work in any establishment, nor shall any employee knowingly permit an employee to work in any establishment, on a day on which the employee is given holiday or is on leave in accordance with provisions of this Act. (Annexure-B)
3. Section 9 of The Delhi Shops and Establishments Act:
No person shall work about the business of an establishment or two or more establishments or an establishment and a factory in excess of the period during which he may be lawfully employed under this Act. (Annexure-C)
4.    Under Industrial Employment (standing Orders) Act,1946

In terms of model standing orders number 8 under schedule IA of central rules A workman shall not at any time work against the interest of industrial establishment in which he is employed and shall not take any employment in addition to his job in the establishment, which may adversely affect the interest of his employer. (Annexure-D)
5.     Under PF Law:
PF can be deposited from 2 or more organizations for an employee with same UAN number. There is no restriction.

6.    Under Income Tax:
There is no restriction under taxation laws. TDS will be deposited by both organizations.
7.   Companies which are not covered under The Factories Act, 1948 & Shop and establishment Act:  
 Contract of Service:
Employees which are not covered under the Shops & Establishment Act and the Industrial Dispute Act is governed by the Contract of Service, which states that the employee would not engage himself in any alternate profession, business etc. during his course of employment. (Annexure-E)

Negative covenants:
Negative covenants clause is a clause in the agreement of service which contains negative covenants restricting the employee from working elsewhere during/after the period covered by the agreement.

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