Hi I am developing a visual studio 2008 application for my company however it was developed during my free time. Am I obligated to leave the source code after I leave?
What benefit would you have to not giving them a copy? Taking a copy for future reference maybe ok, but you should still leave them with a copy.
well i guess my code gets more exclusive. anyway the application is not set up yet, so if i gave them the code most probably it will be handed to another novice programmer which is a rip off.
You've already answered your own question. The chances are that your contract will also have a clause in it regarding IP when developing stuff while working for the company. Doesn't matter when you did the work. You're doing it for your company, so the source code not only should be left to them but it will also belong to them. You have no rights over this software. If you didn't leave it, theoretically (depending upon how nasty they were) they could sue you for the time taken to re-develop the application, for business loss because they couldn't use/debug/enhance the application, and for any money made if you used the source code (or parts of it) that was their intellectual property AND contact anyone else who was using it asking for a licence fee. It's simply not worth it. If you did the work for them, give them the source code.
What do you mean by "it was developed during my free time"? is it your office time or at home? If it is your office time (that you are allowed to develop the software by using office resources) then the ownership of code goes to the company in my point of view. If you have developed it at home, then definitely you can either keep the code or ask for a reasonable fee.
I really don't want to start a flame war here, but I don't believe that is correct. You need to check your employment contract carefully because all the contracts I've seen in this field (software development) make it quite clear that any software developed while you were an employee of the company are the property of your employer. Doesn't matter that you did it in your own time, or in your own home, the contract will apply. However, this is largely moot, because you've already said you are developing it for the company, so it's the property of the company. Like everything else, you need to consult a lawyer, particularly one specializing in employment law to clarify your position. It's not us that are taking the risks, it's you, so you want to be absolutely sure.
There is no contract whatsoever and the program is not my main job. I am just demonstrating to my employer the capabilities of VS2008. The problem is I was not paid for making this program as it is not part of my job during the interview. And the salary was also negotiated based on my simple job task.
Ok, not sure where in the world you are, but in the UK, there will be a contract in existence the minute you walk in the door. Not giving you written Terms of Employment within a period of time (can't remember what it is) is an offence, but even without these terms there is an implied contract in place as soon as you start working for them. The contract will consist of any statutory employment legislation that protects you such as periods of notice, redundancy, minimum wage, any verbal agreement and understanding, and after a while the "normal" practices of your employer can become a factor. Not having written terms can be a bonus if you plan to leave because they can't then thrust them upon you. But, since you have nothing in writing and you are "demonstrating the capabilities of VS2008 in your own time", then that is a completely different thing from developing something for your employer. You might still be on shaky ground but the language you use to describe what you are doing is essential. For safety's sake I'd still consult a lawyer, but moderating the language you use to describe your activites is more likely to work in your favour.
Here comes another question from me... Who asked you to write the software? Was that your boss or you thought about it? Since there is no contract, if it is your boss, then the code belong to your company, if it is you then it is fare enough to ask a reasonable fee for the source. One thing to note. Mostly a customised source has a fewer marketing value. So try to sell it for a reasonable fee to your company by explaining the effort you put on this, etc... Lets see what other guys are also saying about this.
Be happy you have a job and give them the source. If you are worried about the price of your free time, stop doing projects outside of work that you aren't asked to do.