As we discussed in the last 2 articles as part of our “Starting a business while working full time” series, there are many factors to consider when starting your own business. This week we will elaborate on the legal factors that you should be conscious of when starting your own business while still working full time.
What should one do first before starting a business?
Before anyone decides to go on and start working on setting up that business, it is important that the person first understands the legal implications that come with being a full time employee. Understanding if there are any clauses in one’s contract of employment should be an important step to take to avoid any problems in the future. There are instances when employees are not allowed to have their own business especially if the business can take the employee’s time away from doing what is required of them at work or if the business can be a cause of conflict of interest for the employer. That is why it is always best to know if starting a business can be detrimental to one’s employment. An employer can terminate an employee’s contract and not even give them compensation. An employer can also sue an employee. An employee can ask human resources who knows the ins and outs of being an employee and they can provide an employee with the proper guidance and answers for any questions regarding this.
Should an employee keep his new business a secret from his employer?
There are employees who keep their business a secret and work on it without informing their employer. If the business runs well and the finances are coming in, then they would resign from work. However be ware that you will not be protected legally if there is something in your contract forbidding you working on your own business. It is always best to talk to one’s employer about the business and see if this is something that is allowed. If it is, then it should not be any trouble for the employee. All the employer wants is that the employee does what he is paid to do so as long as the new business does not affect this, it should not be a big deal. An employee may also benefit from informing his employer about the business. The employer can help support the new business. If an employee decides that it would not be a good idea to tell his employer, this is more difficult. Some employers can get suspicious especially if the employee starts to slack off and so they would do research. They can easily find out via a quick search on Companies House and an employee can be in big trouble.
Who should be informed about starting a business while working full time?
A person’s colleagues can be a source of great support for the new business. It could be a good idea to tell them about the endeavor. However, one should take caution about who they talk to about it as the news might spread through the company and cause problems down the line. Though an employee may have their own business, it should be important that they understand that they still need to fulfill their duties and tasks as an employee. It is important to still be respectful to the company and to the people working in it. Once an employee is logged in at work, he should focus on that only and not use the company’s time and resources to work on their business. This should help them get support from their employer and colleagues.
Starting a business as a full time employee can be a big undertaking. One should always review his contract of employment and understand the legal implications that come with setting one up.
published under Business Address Guides
