Asked to work for sister company

I am an IT professional working for Company A. As part of my role I build and maintain a number of different applications. These applications are owned and operated by Company A. Company A has decided to build a new product, which will serve a very niche need in our particular industry. Company A will be the primary consuming of this service, but it is expected other players in our field will also be interested.. For legal, financial and logistical reasons a new company has been formed to keep this product distinct: Company B. The plan is to leverage the existing staff and IP in company A to bootstrap Company B. There is a lot of tools that Company A uses, that I maintain, which will be useful in building Company B. In particular, as the primary technical lead almost all the responsibility for the new product has fallen to me. I will be expected to change focus and work almost exclusively on this new product for many months until it is operational. Due to the gap in capabilities, the sooner this product is up and running the better: so the whole thing has been rushed. The leadership of Company A are fighting multiple fires at the moment, this being only one. As a result I think there has been very little thought of staff other than what they can contribute to the new company. My question is, what potential issues are there for me personally for performing work for this second company? Am i exposed to any liabilities? Is it legal for me to pretend to work for Company B when I am formally employed and my time is paid for by Company A? There has been very little discussion about the legalities of working for this second company, nor any conversations around compensation. We were just told to expect to be assigned tasks for Company B at any moment. Should I be trying to capitalize on the situation?

Mar 7, 2025 - 09:29
 0
Asked to work for sister company

I am an IT professional working for Company A. As part of my role I build and maintain a number of different applications. These applications are owned and operated by Company A.

Company A has decided to build a new product, which will serve a very niche need in our particular industry. Company A will be the primary consuming of this service, but it is expected other players in our field will also be interested.. For legal, financial and logistical reasons a new company has been formed to keep this product distinct: Company B.

The plan is to leverage the existing staff and IP in company A to bootstrap Company B. There is a lot of tools that Company A uses, that I maintain, which will be useful in building Company B. In particular, as the primary technical lead almost all the responsibility for the new product has fallen to me. I will be expected to change focus and work almost exclusively on this new product for many months until it is operational.

Due to the gap in capabilities, the sooner this product is up and running the better: so the whole thing has been rushed. The leadership of Company A are fighting multiple fires at the moment, this being only one. As a result I think there has been very little thought of staff other than what they can contribute to the new company.

My question is, what potential issues are there for me personally for performing work for this second company? Am i exposed to any liabilities? Is it legal for me to pretend to work for Company B when I am formally employed and my time is paid for by Company A?

There has been very little discussion about the legalities of working for this second company, nor any conversations around compensation. We were just told to expect to be assigned tasks for Company B at any moment. Should I be trying to capitalize on the situation?