Le Intelligensia

Can an employee start his own business?

Listen Later

CALL 9941993399 FOR ANY CLARIFICATION

Digitalization, online business, e-freelancing, and many other online forums have created a curiosity among many of the people to start their own business. Here the question is a bit crucial, can you start a full-time or part-time business when you are on employment?

Types of employees

The basic types of employment are

  1. Government job: According to Government employment service rules, the government employees are not permitted to start or run any business in his/her name.
  2. Private Job: A person who works in a private company as a full time or part-time employment is named as employed in a private job. This question is to be dealt with in detail.
    3. Can an employee in a private job start his own business?
    A. What your contract says?

    While joining in any company you would have signed some contracts or agreement such as

    • Employment contact
    • Offer letter

      • If the terms in that contact expressly restrict you from doing any business during the course of employment, it would not be possible for you to start any new business activity during employment.

      What would be the consequences

      Legal action: The employer may take legal action against you to stop the business activity by way of filing litigation before the court of law. The court may order the damages as mentioned in the contract or a reasonable amount as compensation against you.

      B. If the contact doesn’t say anything about business

      If the contact doesn't say anything or is silent about the employee doing any private business, then there is no bar for you to start a part-time business. But while doing so, you must be very careful in doing so.

      Consequences

      Termination from the job: the private job is not like a Government job. In a private job, the employer can terminate you at any time by giving a proper termination note and can remove you after the notice period.

      Don'ts

      1. Not to utile the office hours for your own business activity
      2. Not to use office resources
      3. Not to use your employer’s clients
        4. C. If you didn't sign a contract

        While joining in employment, if you have not signed any contract or agreement, the situation is very same as that of the previous case.


        http://leintelligensia.com/can-an-employee-start-his-own-business/


        https://youtu.be/lLe5JTa65jA

        ...more
        View all episodesView all episodes
        Download on the App Store
        Le IntelligensiaBy Arivazhagan