Donation to NGO in lieu of Teaching Services


I am working with a MNC as a consultant (real estate & business) since last 4 years. I have worked with leading bank also prior to that which has helped me to gain good knowledge of both the sectors (Bank-Finanace & Real estate) . I have been approached by a tutorial classes to provide career guidance in Real estate & Banking sector to their students on weekends just for 30 mins a month or twice a month. They are insisting that i should accept the cash of approximately 2000-5000 or small gifts in return from tutorial. My company would not allow me to do so, so I thought to ask them to donate 75% of the amount to any NGO and keep 25% with them. Is it ok from my side, any issues expected from my employer or any where if this is declared? I am not making any money, tutorial would be charging extra money to their students for that lecture but I m not charging any amount . Upto 75% of the amount which will be charged to students will go to any NGO as a charity. Is this ok and safe for me? I would like to donate/help other with my skill set and knowledge.

Kindly advice.

Asked on August 1, 2016 in banking.
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2 Answer(s)

You are eligible to share your knowledge as long as it is the common general knowledge which any concerned faculty would be sharing with his students i.e. something which would be available in the public domain and you are not earning profits out of the same. The only time your employer can intervene or object is when you would be sharing anything confidential to the MNC or the previous bank  or which is against the terms and policies of your MNC. If the knowledge you are sharing is something easily accessible within the public domain; then your employer cannot object to it. As long as you are not earning the profits, it shall be within permissible limits. The tutorial class can utilise the money the way they want. However it would be advisable to put the clause of giving it to the NGO. 


Hope it helps.

Answered on August 4, 2016.
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In order to determine the legal validity of your act, you need to look into the contractual Employment Agreement that you have signed with the MNC. Various employment agreements do provide for a restraint of trade clause wherein the employee is restricted to work or carry on any other profession elsewhere. If such a restraint clause exists in your agreement, then you may be restricted from carrying on the tutorial clause, depending on the scope of such restraint.

However, all such restraints are not valid and for a restraint clause to be held valid, it must be proved that it is reasonable. Any restraint agreement which is not reasonable can be declared void under Section 27 of the Indian Contract Act. Whether the restraint clause is reasonable, is decided with regard to the ‘interest’ which the restraint is designed to protect. (Nordenfelt v Maxim Nordenfelt Guns and Ammunition Co. Ltd. [1891-94] ALL AR Rep 1; Vancouver Malt and Sake Brewing Co Ltd.AIR 1934 PC 101) Therefore, you need to assess the interest with which the restraint clause (if any), is inserted in your agreement. If your act of taking the tutorials in no way hinders the Company’s interest, then you may go ahead with your ideas of taking tutorials. 

Answered on October 2, 2016.
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