Conflicting employment: Overview, definition, and example
What is conflicting employment?
Conflicting employment refers to a situation where an individual holds two or more jobs, positions, or roles that create a conflict of interest or violate the terms of employment agreements. This can occur when an employee’s duties or responsibilities with one employer interfere with their ability to effectively perform their duties with another employer. Conflicting employment may arise when there are competing business interests, a violation of confidentiality, or an employee working for a competitor or in an area where they have insider knowledge. Employers often include clauses in contracts or policies that prevent employees from taking on conflicting employment that could undermine their loyalty, productivity, or confidentiality obligations.
Why is conflicting employment important?
Conflicting employment is important because it can lead to ethical and legal issues, including breaches of confidentiality, conflict of interest, or even the misuse of proprietary information. When an employee works for two employers with competing interests or in a similar industry, it could result in a situation where their duties to one employer negatively impact their performance or loyalty to the other. This can lead to distrust, inefficiency, or legal consequences if there is a breach of non-compete or confidentiality clauses. Therefore, preventing conflicting employment helps protect an organization’s interests, intellectual property, and ensures employees are fully dedicated to their roles.
Understanding conflicting employment through an example
For example, an employee working for a software development company may also take a part-time job with a competitor in the same industry. This situation could create a conflict of interest, especially if the employee is privy to sensitive information, such as trade secrets or proprietary code, which could benefit the competitor. The company employing the individual might have a policy that prohibits conflicting employment to avoid the risk of intellectual property theft or compromised business interests.
In another example, a lawyer working for a law firm might be prohibited from taking on cases for clients that directly compete with the firm’s clients. Doing so could create a conflict of interest, where the lawyer might have access to confidential information about both clients, making it difficult to serve both parties impartially.
An example of a conflicting employment clause
Here’s how a conflicting employment clause might appear in an employment contract:
“The Employee agrees not to engage in any outside employment or business activity during the term of their employment with [Company Name] that directly or indirectly competes with the interests of the Company or interferes with the Employee’s duties and responsibilities under this Agreement. The Employee must obtain written consent from the Company prior to accepting any other employment or business engagement during the course of their employment.”
Conclusion
Conflicting employment can present significant challenges for both employers and employees, particularly in industries where intellectual property, confidential information, or business interests are at stake. By addressing conflicting employment in contracts or policies, employers can ensure that employees remain focused on their duties, avoid potential conflicts of interest, and protect the organization’s interests. Ensuring clear guidelines on conflicting employment helps maintain trust, legal compliance, and efficient business operations.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.