Employee is also director in another company without knowledge

23-May-2024 (In Civil Law)
An employee of my organization is also a director in another company . He had not made that aware to my company. He signed a service agreement on behalf of my company and the company in which he is a Director. After an invoice was raised he went absconding. At the moment the company where he is a director is following up for payment of invoice. Are we obliged to honor the invoice ? Our app'ment letter clrly states tht while in employment one cannot engage in any other eco activity
Answers (2)

Answer #1
804 votes
With reference to your query please note that you are employee was under obligation to disclose his current status. why not doing so he has obtained the job on the basis of misinformation. secondly while he was in service he might have known about the lowest quotation of the work and hence he might have given the lowest one .. He has played fraud upon the company. You need to issue a legal notice for cheating.

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Answer #2
588 votes
Well, you are not under any sort of obligation to pay the raise Invoice for that Employee of your organisation, who entered into a Service Agreement on behalf of your organisation, without taking the concerned Decision makers of your institution.
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