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Employee setting up 2nd company on company time

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  • 11-06-2015 4:35pm
    #1
    C-Shore
    Registered Users Posts: 686 ✭✭✭


    Hello,

    I've found the following threads, but nothing exactly to what my query is.
    http://www.boards.ie/vbulletin/showthread.php?p=79759599
    http://www.boards.ie/vbulletin/showthread.php?p=87996397

    So here's the scenario:

    An employee is working as a sales rep for "Company A". They go out on sales calls off-site on a daily basis.
    While they are supposed to be doing work for their employer, Company A — they are actually doing work for their own company "Company B" and getting sales for Company B.

    If Company A finds out about this, what claim does Company A have on Company B, considering they basically funded the start up costs of Company B.

    I'm not sure if there's any precedent for this, I haven't been able to find any, other than reference to contract law.

    I'd really appreciate if anyone had experience or knowledge on this.


Comments

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    #2
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    I would imagine a company such as A would have it in the employee manual/contract that employees can't have a second job or at least not one that conflicts with their role at company A. If they found out I would think at the minimum it would be a sacking offence and if they are driving around in a company car or company uniform then it could get a bit more serious as then it could be seen as trying to pass themselves off as being company A while acting for company B.


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    #3
    pedroeibar1
    Closed Accounts Posts: 5,108 ✭✭✭pedroeibar1


    Get a HR expert in. Get proof. Look at their employment contracts. It should be clear that working for any another on company time is a sacking offence. Misuse of company property (i.e. vehicles) should be another. Call a sales meeting for all of them. Then, with expert present, suspend them on full pay pending review of what appears to be “gross misconduct”. Take the car keys and laptops from them, cancel passwors, IT access, etc. Send them home. Then do lots of homework. If the “side-line” is in the same sector, I’d fire them. The HR expert will give you the odds of winning or costs of an unfair dismissals case after firing them.


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    #4
    dbran
    Registered Users Posts: 2,094 ✭✭✭dbran


    OK.

    Here is what you do.

    1) Take a step back. Calm! Dont do anything rash or off the cuff. You may regret it later.

    2) Gather your evidence and make sure that you are certain and you are not doing this because you "think" he is moonlighting.

    3) Only once you are sure, you call the guy in on his own (not in front of everyone). You tell them that you believe that there may have been a misuse of company property, working for himself on company time etc. As this is a very serious offence you will need to carry out a "full investigation" of all of the facts. You will be taking away his laptop, keys to the car, client information while this investigation is going on as a precaution. Very important that this is an informal meeting. You certainly don't take notes on this occasion as they could be used against you!!! No shouting, table thumping etc just calm and professional.

    4) You suspend the guy ON FULL PAY as otherwise your investigation may be viewed as just a rubber stamp and not a thorough and even handed one. If there is another manager who is not normally involved in the day to day management of his department then perhaps get him to do the investigating. It is important that it is seen to be fair and not got a predetermined outcome.

    5) Once you have completed the investigation, then you call him in and tell him he is dismissed under gross misconduct following the procedures for dismissal under gross misconduct in your employees handbook.

    Everything from point 4) onwards is documented. You make sure you follow the procedures in your employees handbook and you do not deviate from it no matter how tempting. You should also contact a HR expert who can advise you further.

    The most important thing is that it does not matter who is right and who is wrong. It is all about procedure being followed and if it was not, he has a case for unfair dismissal no matter what he did and a trip to the labour court could result in a years wages as compensation.

    Best of luck with it.

    dbran


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    #5
    C-Shore
    Registered Users Posts: 686 ✭✭✭C-Shore


    Thanks so much for the responses on this, it has been really helpful and also reassuring to know that there is definitely a possibility of a breach.

    I just want to make sure I follow the right procedure now.

    I'll try and update it with as much detail as possible without giving away too much, as obviously I don't want to jeopardize anything, but thanks for this help.


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