Legal and ethical considerations for employers
Before jumping into a new side hustle, it is important to consider all the factors, particularly how it can affect a full-time job that is the primary source of income.
An employee’s side hustle can present valid legal and ethical concerns for employers.
“Employers typically have two concerns about side hustles,” says workplace expert Michelle Gibbings.
“One is a conflict of interest and the protection of intellectual property and the other is overload. Are they working too many hours, and will it affect their full-time job?”
If an employee says they are setting up a side business, the best approach is to be clear about the boundaries, Gibbings says.
“There are occasions where people want to keep their full-time job while they’re testing the waters to see whether their side hustle is actually a viable proposition. If it is in the same professional area, there needs to be a very clear distinction that has no connection with the day job,” she says.
For people who are pursuing a passion, such as an accountant with a photography business on the side, a supportive approach may benefit the business, Gibbings says.
“People can run into issues if they are performing work on another business during time that they are paid to be performing work for an employer. It can give rise to a valid basis for disciplinary action to be taken.”
“It can help the organisation if the employee is developing a skill set that the employer can leverage in some way. By being supportive and flexible, the person sees the company as a great place to stay.”
According to Patrick Turner, principal in employment law at Maurice Blackburn, “People can run into issues if they are performing work on another business during time that they are paid to be performing work for an employer.”
“It can give rise to a valid basis for disciplinary action to be taken,” Turner adds.
Some industries, including those in professional services, may even seek to prohibit what an employee can do outside work hours if it relates to the type of work being performed.
“We often see disputes arising where there’s some contention that there was a breach of the employment contract by commencing that business during the course of the employment,” Turner says.
No two cases will be the same, Turner adds. The critical step is for anyone looking to start a side hustle who is concerned their employer may take issue with is to get advice.
“If someone is passionate about a side project that they may derive a reasonable income from, it is worth paying to get professional advice prior to going down a certain path and then getting pulled up by an employer who has taken an aggressive stance at the last minute,” Turner says.
Source: How to make money with a side hustle | INTHEBLACK
