Can I start a business simultaneously while being employed in a private company if my employer restricts any kind of employment or commercial activity outside the job? What will be the legal consequences of starting a business and hiding it from my empoyer?


There is no provision in Labour Laws which says that an employee working in a very private company cannot do separate business, sort of a government employee who cannot enter into dual employment, i.e. cannot make gain from another source, unless he’s authorised in writing by the concerned department.

Therefore, the law itself doesn’t stop you from running a business simultaneously while being employed during a private company but your employment agreement is what’s going to play and important role here.

You’ll need to check your employment agreement for any clause/ clauses which state that you simply won’t do the other work or business during the course of your employment with the company; plenty of companies have such clauses in their agreements.

So if the contract explicitly says that you simply won’t work anywhere else, you may need to follow such conditions because you’ve got signed the contract and agreed to them.

If you begin a business in contravention of the terms of the contract by concealing the business from your employer, it’ll amount to breach of contract and your employer will have the facility to file a suit against you and it’s therefore advisable that you just don’t start a business while beig employed, or quit your job before doing so.

Reference: Section 73 – Indian Contract Act – When a contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby – 202100457-20210033-1347



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