With the rising cost of living and the growth of flexible working, more employees are taking on second jobs or “side hustles”. While this is not new, it can create legal, operational and reputational risks for employers if it is not managed correctly.
So, what should employers be aware of when an employee works elsewhere?
In most cases, yes. Employees are generally free to work for more than one employer unless there is a clear contractual restriction in place. However, any restrictions must be reasonable and enforceable. Blanket bans are rarely appropriate and may not stand up to challenge. Instead, employers should focus on protecting legitimate business interests, such as confidentiality, conflicts of interest and working time compliance.
Employment contracts should clearly set out expectations around secondary employment. Common provisions include:
• A requirement to disclose other paid work
• Restrictions on working for competitors or clients
• Confidentiality and intellectual property protections
• Requirements not to allow other work to impact performance or availability
Where contracts are silent or outdated, employers may have limited options if issues arise.
Employers remain responsible for ensuring compliance with the Working Time Regulations, including rest breaks and the 48-hour working week (unless an opt-out is in place).
If an employee is working excessive hours across multiple jobs, this can create health and safety risks and expose employers to potential claims. Open conversations and clear declarations are key to managing this risk.
Second jobs can sometimes create conflicts, particularly where employees work in similar industries or use skills, contacts or information gained through their primary role.
Employers should ensure conflicts of interest are identified early and that confidentiality obligations are clearly communicated and enforced.
While employees are entitled to work elsewhere, employers can still manage performance. If a second job begins to impact attendance, output or wellbeing, this should be addressed through normal performance or absence management processes.
Ignoring the issue can increase burnout risk and affect wider team performance.
To reduce risk and maintain fairness, employers should:
• Review employment contracts and policies to ensure secondary employment is addressed
• Introduce a clear declaration process for second jobs
• Train managers to spot potential risks early
• Balance flexibility with clear boundaries and expectations
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Handled well, second jobs don’t have to be a problem. With the right framework in place, employers can support flexibility while protecting the business.
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