Want to manage conflicts of interest and moonlighting in your business? If so, put this clause in your employee's employment contract.
Prevent moonlighting in your business by including this clause in your employment contract
According to the Labour Law for Managers Loose Leaf Service, you can manage conflicts of interest and moonlighting if you insert a clause to protect yourself if your employee acts against your company interests.
This ensures your employee's conduct doesn't give rise to a conflict of interest with your business.
This clause will make it a serious act of misconduct for your employee to engage in after-hours work in competition with you and this could lead to dismissal.
By adding this clause, your employee agrees to devote his working time to your business and not abuse your company's time (working hours) or resources (Internet, fax machine, phones) for personal projects unrelated to the business of your company.
Here's a sample clause you can include in your employee's contract:
'The employee must not engage in any outside work or activity for remuneration without obtaining prior written consent from ____________ (company's name).
The employee must not engage in any work or activity, with or without remuneration, if that work or activity can reasonably be seen to be in conflict with the interests of ____________ (company's name).
The employee must disclose any interest in any other business or undertaking or institution or participation in any other activity that may result in a conflict or potential conflict of interest with the interests of ____________ (company's name).'
Remember, if you don't include this clause in your employee's employment contract, it'll be very difficult for you to take action against him if he disobeys your policy against moonlighting. He can say he didn't know.
Make sure you include this clause to ensure your employee's time and effort is devoted to your interests during working hours. Doing this will help ensure manage conflicts of interest and moonlighting.