Employer rights for employees with second jobs

More than one million UK employees are known to have a second job, although the true figure is likely to be much higher. Often referred to as moonlighting or secondary employment, this can include taking on another employed role, freelance work or running a separate business.

For many employees, a second job is driven by financial pressures, while others take on outside employment to develop new skills, pursue career opportunities or generate additional income. Although there is nothing inherently unlawful about employees having a second job, there are a number of legal and practical implications that employers should consider.

Complications can arise in relation to legal liability, including working time and rest breaks, taxation and entitlement to certain statutory rights, such as maternity and paternity leave and pay. Many employers will also have concerns about competing interests. Is the employee distracted from their primary role, spreading themselves too thinly, or even competing with the employer’s business?

In this article, we explore what rights employers have when employees hold a second job, together with the practical steps organisations can take to manage the associated risks.

Can employers prevent staff from having a second job?

Employers can only prevent employees from holding a second job where there is a valid contractual restriction in place. Any restriction must be reasonable, clearly communicated and supported by a legitimate business need. Clauses prohibiting work in competition with the employer’s business, or requiring employees to obtain prior approval before taking on outside employment, are generally more likely to be enforceable than an outright ban.

Most employment contracts include a requirement for employees to devote their “full time and attention” to their role during working hours. This does not prevent someone from taking on evening or weekend work. As a result, many contracts also include exclusivity clauses or provisions restricting secondary employment without the employer’s consent.

Even where there is no specific contractual clause, employees owe a duty of fidelity and good faith to their employer. This means they must not compete with the organisation, misuse company time or resources, or allow outside employment to impair their performance. The more senior the employee, the greater these obligations are likely to be.

How can employers reduce the risks?

The best starting point is to review employment contracts and workplace policies to ensure employees are required to disclose any secondary employment. Any restrictions should be reasonable and clearly explain how approval can be sought.

Related policies, including confidentiality and intellectual property provisions, should also be reviewed to ensure they provide appropriate protection for the business.

Employers should also consider asking about outside employment during recruitment and induction, and revisiting the issue periodically during employment. Employees are more likely to disclose a second job if they understand they are expected to do so, making it easier to address potential issues and enforce contractual obligations where necessary.

Can an employer dismiss someone for having a second job?

Potentially, particularly where the employment contract requires employees to disclose other work and they fail to do so.

This is especially likely where the arrangement results in a breach of confidentiality, creates a conflict of interest or leads to breaches of the Working Time Regulations. Ultimately, whether disciplinary action or dismissal is appropriate will depend on the seriousness of the breach and its consequences.

In almost every case, employers should follow a fair disciplinary process and ensure they act consistently. It is also important to recognise that some reasons for taking on additional work may be linked to a protected characteristic. This does not prevent employers from taking action where appropriate, but it does mean any action must be fair, proportionate and consistent with internal policies and procedures.

How should employers manage employees with a second job?

Whether secondary employment has been approved or simply disclosed, employers should continue to manage employee performance in the usual way.

If an employee’s second job begins to affect attendance, punctuality or productivity, these issues should be addressed through the employer’s normal performance management procedures.

Practical issues can also arise where an employee’s availability is affected by another role. Expectations around outside employment should therefore be discussed before approval is granted, and employers may wish to review the arrangement periodically. Any monitoring should, however, be proportionate and carried out in accordance with privacy and data protection obligations.

What else should employers consider?

Health and safety

Employers have a duty to ensure the health, safety and welfare of their employees. Assessing workplace risks and taking reasonable steps to reduce them forms an important part of that duty.

This is another reason why employers should be aware of employees with second jobs. Fatigue caused by working multiple roles can increase the likelihood of workplace accidents. While it may be difficult to determine which job caused the fatigue, an employer could still face liability if an incident occurs in their workplace.

Working Time Regulations

Employers must ensure employees do not work more than an average of 48 hours each week unless they have signed a valid opt-out agreement.

For employees with more than one job, working time must be calculated across all employment. Responsibility for complying with the Working Time Regulations therefore rests with each employer.

Employees are also entitled to minimum daily and weekly rest periods, including 11 consecutive hours’ rest between working days and either 24 uninterrupted hours each week or 48 hours each fortnight.

Managing compliance across multiple employers can be challenging. Employers should establish whether an employee has another job, understand the hours being worked across all roles and, where appropriate, discuss a voluntary opt-out of the 48-hour working week. Above all, transparency around working hours and rest periods is essential.

Confidentiality and data protection

Employees with a second job may use laptops, mobile phones or other equipment provided by their primary employer. This can create significant confidentiality and data protection risks.

Employers should ensure their policies make clear that business equipment is only to be used for authorised work purposes.

Employment contracts should also reinforce that confidential information, commercially sensitive material and business data must not be used for any purpose outside the organisation. Where approval is sought for secondary employment, confidentiality obligations should form part of the discussion and any associated risks should be assessed.

What about employees who volunteer?

Not all commitments outside work involve paid employment. Some employees volunteer as sports coaches, charity trustees or school governors.

Although these roles may be unpaid, they can still have implications for an employer in terms of time commitments, potential conflicts of interest and, in some cases, reputational risk.

For that reason, it is sensible to ask employees to notify the organisation of significant voluntary appointments so that any impact on their role can be properly assessed.

How we can help

Managing employees with second jobs requires employers to balance legitimate business interests with employees’ contractual and statutory rights. Clear employment contracts, robust workplace policies and consistent procedures can help minimise legal and operational risk while supporting a fair and transparent approach to secondary employment.