employee running own business

[Heathers]

We are an electrical company and have found out that one of our staff members is running his own electrical business on the side. He is always receiving calls for electrical work, buys material during company time. Is this legal or is it a conflict of interests.

[HR Solutions]

It is a conflict of business. I would not tolerate it as if he first of all didn't tell you, then he is hiding it. Secondly you say he is always receiving calls - in your time ?!!
If you don't do something about it then the shit is going to hit the fan sometime or other. How do you know if he is perhaps telling your clients to phone him direct and he will do the job cheaper ?

[Justloadit]

HR is spot on.
Time to call him in, and request him to immediately resign, after having him confronted by the evidence before you. Use the excuse that you will contract him to do your work, so that he will not lose out on income.
If he feels that he is an entrepreneur, then he must accept all the overhead costs involved in being in business.

[Dave A]

From the Main Collective Agreement for the Electrical Industry of South Africa (Government Notice No. R. 260 of 24th March 2017) -

34. OUTWORK

(1) No employer shall require or allow any of his employees to undertake work in connection with the Electrical Industry other than to execute work in completion of an order placed with such employer.

(2) No employee whilst in the employ of an employer shall solicit, undertake or perform any work other than on behalf of his own employer in the Electrical Industry, whether for remuneration or not, during or outside of the ordinary hours of work or working days prescribed in clause 7 of this Agreement, save that such employee may carry out work on his own premises outside of normal working hours.

(3) No employer shall employ any employee of another employer in the Electrical Industry, whether for remuneration or not, during or outside of normal working hours or during any leave period of such employee.

It is conduct in contravention of the employee's terms and conditions of employment (misconduct) and you can (and/or must) commence disciplinary action.