Personal business: Overview, definition, and example
What is personal business?
Personal business refers to activities, obligations, or matters that relate to an individual’s private affairs rather than their professional or work-related responsibilities. It can include financial transactions, legal matters, appointments, or any personal commitments that require time and attention.
For example, an employee may request time off from work to handle personal business, such as attending a court hearing, managing property affairs, or meeting with a financial advisor.
Why is personal business important?
Personal business is important because individuals need time and flexibility to manage their private obligations without disrupting their professional responsibilities. Many organizations have policies regarding personal business during work hours, leave policies, and conflict-of-interest rules to ensure a balance between personal and professional commitments.
For businesses, clearly defining when and how personal business can be conducted in workplace policies helps maintain productivity while allowing employees reasonable flexibility. It also ensures compliance with legal and ethical guidelines when employees conduct personal business that may impact the company.
Understanding personal business through an example
Imagine an employee working for a corporation needs to visit a lawyer for estate planning. The company’s HR policy allows employees to use personal leave days for such matters. The employee submits a request for leave, and it is approved under the company’s personal business leave policy.
In another scenario, a small business owner manages both their company and rental properties. To avoid conflicts of interest, they ensure that business resources are not used for personal property management, and they keep separate financial records for their personal business activities.
An example of a personal business clause
Here’s how a personal business clause might appear in an employment contract or workplace policy:
“Employees shall not engage in personal business activities during working hours unless approved by management. Requests for personal leave to handle personal business must be submitted in advance and will be subject to company leave policies.”
Conclusion
Personal business refers to individual obligations and private affairs that are separate from work-related duties. While employees and business owners must manage personal and professional responsibilities, having clear policies and guidelines ensures a fair balance between the two.
By defining when personal business can be conducted in contracts and workplace policies, businesses can ensure productivity, avoid conflicts of interest, and provide reasonable flexibility for employees to manage their personal affairs.
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.