Lovy Uppal (Assistant Manager) 12 March 2014

Dual contractual employment

Dear All, I am an HR with a consulting firm. Would be great if someone can help me with the below doubt: Lets say Mr. A has a Direct Contract to make a building with an employer for an 8 - 9 hrs job. Now Mr. A wants to sign another contract for a building with a different employer but the second contract will have no time boundation. Is this permitted under the Contract Labour Act? Are there any restrictions? Or will this be treated as a freelance job and covered under a different act? Would be thankful for the help.

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3 Replies

Rohan (Manager- Legal) 12 March 2014

If the first contract is specifically barring dual services for commercial gain then you cannot enter into a second contract.

Whetrher this service can be termed as freelancing or not will depend on the terms of the appointment letter.

Sanjay Malik (Manager- Legal & Compliance ) 13 March 2014

can you please clarify more whether he is a full time employee in first contract, or first contract is a contract for service or employment contract.

if its a service contract/jon contract, he is a service provider than the second can be executed.

and if the first contract is contract of service for employment, then there is a restrain on dual employment.

Lovy Uppal (Assistant Manager) 13 March 2014

Thanks Rohan Sanjay, in this case, the first contract is also a contract of service and has no clause prohibiting any employment or business for commercial gain. Thanks, Lovy